As the spring homebuying season kicks off, the housing market is showing encouraging signs of growth. This recent uptick in housing inventory, the largest in nearly a year, is bringing new opportunities for prospective buyers.

Growing Inventory Sparks Buyer Interest

Over the past four weeks, leading up to March 17, the total number of homes available for sale in the U.S. has increased by 5%, the most substantial year-over-year increase since May 2023. This boost in inventory is complemented by a 15% rise in new listings, the largest since June 2021, signaling a revitalizing market eager to welcome new and returning buyers.

This surge in listings isn’t just good news for the quantity of available homes—it’s also reinvigorating buyer interest. Mortgage-purchase applications and Redfin’s Homebuyer Demand Index, which tracks requests for tours and other buying services, have each seen an approximate 9% rise month over month. This renewed enthusiasm points to a growing confidence among buyers, spurred by the increased options.

Steady Prices Amid Rising Inventory

Despite the increased supply, home prices continue to show resilience. The median U.S. home-sale price has seen a 5.3% year-over-year increase, marking it as the second-largest rise since October 2022. Moreover, the median monthly mortgage payment remains just $31 shy of its all-time high, a testament to the enduring value in the housing market despite the challenges of elevated mortgage rates.

However, there’s a silver lining for those worried about mortgage costs. Following a recent Federal Reserve press conference where interest rates were held steady, experts anticipate a gradual decline in mortgage rates throughout 2024. This forecast suggests a potentially more affordable borrowing landscape ahead, making this an opportune time for buyers to consider entering the market.

A Closer Look at Market Dynamics

While the national trends provide a broad overview, the local insights paint a more detailed picture of the market’s dynamics:

• In places like San Jose and Miami, median sale prices have witnessed significant increases, indicating robust local markets.
• Conversely, cities like San Antonio have seen minimal declines, showcasing the diverse market conditions across the country.
• Interestingly, new listings have skyrocketed in areas like San Jose and Phoenix, further illustrating regional variations in housing availability and buyer interest.

What This Means for You

If you’re contemplating buying a home this spring, the current market conditions offer a mix of challenges and opportunities. The growing inventory provides more choices, potentially lessening the competition that has typified recent years. Meanwhile, the prospect of decreasing mortgage rates could make financing a home more manageable in the months to come.

For those ready to take advantage of this window of opportunity, now may be a strategic time to start looking at your options. As always, it’s crucial to stay informed about both national trends and local market conditions to make the most educated decision in your home buying journey.

If you have any questions about the current market or need advice on navigating this season’s homebuying process, feel free to reach out. Let’s make your dream of homeownership a reality this spring!

Chenine Lozano
Real Estate Finance Expert
562-762-7511