Are we heading into a hot spring housing market?
Altos Research released their most recent report on the current housing market. They highlighted that the Federal Reserve is less likely to cut mortgage rates soon than previously thought, and this has helped keep mortgage rates higher than expected. However, this hasn’t slowed demand from buyers and has been supported by sellers.
Home inventory is currently 19% higher than the same time last year and indicates that we could be headed for a very active housing market this Spring.
What we’ve typically seen is that higher rates lead to less buying, and that causes an increase in inventory. We’re starting to see less buying, and that’s leading to more inventory, but there’s enough activity to keep prices at current levels.
Sales are slowing, but there is nothing in the data that indicates we’re headed for a slow market. What is interesting in price data is that we saw an increase in homes on the market that underwent a price cut for the second straight week.
Could home prices jump if rates dip?
A recent Axios article focused on the Nashville housing market indicates that home prices could jump if mortgage rates finally cool off.
Home prices in Nashville have cooled off from their peak in 2022, but a decrease in mortgage rates could add buyers to the market, increase the demand for homes, and cause a spike in home prices.
In 2021, mortgage rates dipped below 3%, and home prices surged in Nashville. The data indicates that a similar situation could occur if we see a sudden dip in 2024.
Is the Austin market a reflection of the country?
The housing market in Austin, TX is heating up again as we inch towards the Spring season. Mortgage rates are a little stickier than expected and the Austin market is continuing to see increases in home prices. Sadly for buyers, the trends appear to be continuing, but buyers continue to support the market at current prices and rates.
New listings in the Austin metro areas are up 56% when comparing January 2024 to December 2023. However, demand continues to increase. Sales in Austin are up 19% month over month, and 4.3% year over year.
If the majority of the country follows the trends we’re seeing in Austin, we could be heading into a phenomenal seller’s market.
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