Triangle Trends with Meghan
Homebuyer Activity Shows Signs of Warming Up for Spring
Wednesday, April 12, 2023
The spring season appears to be warming up in housing as more and more buyers enter the market. And after rising mortgage rates sidelined so many buyers last year, that’s a good sign for sellers. Realtor.com has the latest:
“Spring is officially here, and like green shoots emerging from the bleak winter, new data suggests that more buyers are back in the market, although more subdued compared to a year ago.”
Some good news for buyers is that homes are selling closer to their List Price. Sold home prices have averaged 98.6% of List Price year to date for 2023 compared to 103.2% for 2022. Home values are still appreciating, but at a more normalized rate with the average sales price up 3.2% year to date.
More buyers brings more competition to our Spring market. The median sales price of Wake County real estate rose for the first time this year to $445,000, up $10,000 from February’s 2023 price of $435,000.
We also know buyer activity is trending up because of mortgage activity data in the Triangle area. According to the Triangle MLS:
“Real estate lending activity in March increased by 37% from February’s level”
That means the number of mortgage applications shows how many buyers are applying for mortgages. Put another way, an increase in mortgage applications means an increase in buyer demand – and as Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains, application activity started ramping up as mortgage rates fell steadily in March:
“Application activity increased as mortgage rates declined . . . recent increases, along with data from other sources showing an uptick in home sales, is a welcome development.”
The recent uptick in mortgage applications, as well as the decline in mortgage rates, is good news for sellers because it means more buyers are actively looking for homes.
Despite recent market shifts, the Triangle is still a sellers market. The current inventory of homes for sale is up a whopping 150% from last year, leading to more choices for buyers. However, in March 2023 we have have 1.5 months supply of homes for sale and we need 4-6 months supply for a balanced market.
What This Means for You
For Buyers: There are great opportunities to win a home now with increased inventory and more stable List to Sold prices ahead of a busy Spring and Summer market.
For Sellers: Buyers are coming this spring, which is typically the busiest time of the year in real estate. And as Realtor.com tells us, if you’re a seller, you need to prepare:
“If homeowners are planning to sell in 2023, now is the time to get ready.”
That means working with a local real estate agent to maximize your home’s appeal and get it listed at the ideal price for your area.
Bottom Line
The housing market is warming up for spring. If you’re thinking about buying or selling a home and taking advantage of this recent uptick in market activity, let’s connect.
