As we get in to Spring, inventory will begin to pick up (quite substantially). I anticipate a more active Spring Market than we have seen since 2022. There are multiple reasons for this:

• Rates have come down (slightly) from their peak.
• Many would-be-sellers in 2023 decided to stay put once rates rose above 7%. They were unwilling to trade their low mortgage rate for a much higher one. However, these sellers are now at the point they must downsize, or move due to life circumstances. These drivers are pushing them to perform.
• Most buyers have mentally adjusted to the higher rates. Buyers in 2023 had sticker shock when they saw their monthly costs nearly double when rates went from 4% to 7.5%+. Many of these buyers scrambled to purchase last Spring before rates rose higher, or withdrew from the purchase market altogether. This softened values for sellers further leading them to delay sale. These factors all but eliminated the Fall ’23 market. Since then, buyer adjustment to higher rates has begun to push property value back up – providing motivation for sellers to now capitalize. This will help alleviate (to a degree) the supply constraint.
• A lot of buyers in today’s market never saw a pre-approval with a 4% rate. They are only accustomed to higher rates and have budgeted accordingly. This has increased demand, subsequently increasing prices.

If you are considering purchase or sale, now is the time to begin getting pieces in place. The Spring/early Summer markets tend to come and go very quickly.

Remember, every individual situation in real estate is different. Please make sure you are informed as to not make any mistakes. Preparation is everything when it comes to succeeding in a competitive market.