We have seen a gradual improvement in market conditions over the past quarter, more buyers have adjusted to the higher interest rate environment.
At the same time, sellers are anticipating an improvement in market conditions in the spring, as we are seeing a marked increase in new listings so far this year. In March there was enough competition between buyers to see a moderate increase in the average selling price compared to last year’s level. But in general prices remained flat.
Price growth is expected to accelerate during the spring and even more so in the second half of the year, as sales growth catches up with listings growth and seller’s market condition start to emerge in many neighborhoods.
As the interest rates come down most likely in June, sales will increase further, new listings will be absorbed, and tighter market conditions will push selling prices higher.
Lower borrowing costs in the months ahead will help fuel increased demand for housing ownership, as demand for ownership and rental housing increases, supply will continue to be top of mind.
Buyers now is the opportunity to enter the real estate market, don’t wait until late spring where the prices will be higher and the competition stronger. Focus on your goals, not the noise. Interest rates can be renegotiated, but you can’t do a claw back on where prices used to be.