Reasons Spring Brings a Budding Housing MarketPosted on Mar 15, 2021
As a home buyer or seller, you may be wondering what this season holds. Historically, the market heats up as the forecast does. With winter comes the holiday season. And who wants to pick up and move while one typically spends the most money, hosts the most family, and the house is fully decorated? Schedules are busy, stomachs are full, and to be frank, people would prefer to stay cozy indoors instead of fussing with a moving truck in a flurry. Besides the basics, why else will springtime prompt a surge in the industry? We’ve got a few reasons for you:
Last Year’s Market
Check out this 2020 data from Realtors Confidence Index via Ramsey. Agents across the United States were asked to give their take on the stability of the market based on buyer traffic. The results are comforting, with only two ranking in the lowest margin: Stable, the majority ranking High, and Colorado ranking Super High among 21 other top states! This is great news for sellers, continuing into 2021.
First-Time Homebuyers & Millennials
While the demand for homes is unlikely to let up, along with escalating prices, we can be confident in the fact that a specific demographic will continue to drive the market. Millennials, in particular, have reached their prime homebuying years and are the fastest-growing margin of buyers. Just how large is this piece of the pie? According to the National Association of REALTORS’ Home Buyers and Sellers Generational Trends Report, millennials make up the largest share of the homebuying population at 38 percent.
Furthermore, according to Norada, not only are millennials snatching up homes with ferocity, but their so-called “starter homes” are turning out to be multimillion-dollar properties rather than tradition’s humble fixer-upper. The competitiveness of the market will continue this season with high close prices being met and first-time buyers chomping at the bit.
The pace of the world-at-large also affects whether the housing market is budding or wilting. As we move out of the crippling effects of the pandemic, into vaccines and an improving job market, so too will the housing market thrive. Demand for homes typically goes hand-in-hand with employment. The unemployment rate, according to HousingWire, was at 6.2% in February. It is expected to drop to 4.7% by the end of 2021 as pandemic restrictions are lifted and consumer spending continues.
The improving economy is also bolstering mortgage rates. Though 30-year fixed-rate loans have recently risen into the 3%s, we’d like to remind everyone that this percentile is historically low and remains very affordable! As long as rates hang out in the 3% ballpark, homebuyers need not be discouraged. Now is the time to hit the market!
So, with confidence in last year’s market, an eager demographic of buyers, and our improving economy, it’s safe to say that springtime is about to bring positivity to the industry! People are ready to relocate and take on new terrain as this extra bit of daylight sets us into motion. As we emerge from hibernation (and this pandemic), growth and opportunities will rain abundant. Whether it’s time to move near to a new school district, move on to new employment, or simply upgrade square footage, springtime is the time to make moves and your Team Lassen agents are here for you. Contact us sooner than later!