There are at least five reasons that spring sellers may have an advantage:

1. Housing inventory is still tight.

When housing inventory is limited, you may be able to sell your house quicker and at a more competitive price.

The numbers support this:

• Though inventory is up year-over-year, housing inventory has yet to recover from its record-low levels.
• Spring is the season when more buyers typically enter the market; your home may get more attention.
• According to the REALTORS® Confidence Index (RCI), listings are still receiving roughly 2.4 offers on average.

Buyer interest in your home may be even higher, depending on the dates you list this spring. Data from Realtor.com found April 16 to 22 to be the “best time to list a home in 2023.” (2024 data is not yet available.) List then, and you might see 16 percent more viewings, 9 percent less competition, and $48,000 more profit. Notably, ATTOM Data reported that “the top 16 best days to sell” were in May.

Want to simplify selling? Use Academy’s *Pre-Approval+ to get the paperwork for your next home purchase taken care of in advance.
 

2. You might have a lot of equity.

As home prices have risen, home equity has also grown by large amounts. The average homeowner may have gained as much as $300,000 in equity. If your equity has increased, it’s there for the taking. Whether you hope to trade up, relocate, or downsize, you could leverage your equity gains. 

“Potential home sellers gained significant amounts of equity over the pandemic, so even as affordability-constrained buyer demand spurs price declines in some markets, potential sellers are unlikely to lose all that they have gained,” Mark Fleming, First American Chief Economist, explains.

3. Mortgage rates are expected to moderate.

Some housing authorities predict that as inflation continues to ease, mortgage rates will follow. Moderating rates can help to boost affordability. If this happens, home sales are expected to pick up as declining rates draw out more buyers.

It’s helpful to keep in mind that:

• Compared to past decades—like the highs seen in the 1980s—today’s rates are still considered relatively low.
• If mortgage rates level out, it could bring more buyers back to the market while also making it more affordable for you to buy a new house. 
• The rock-bottom rates seen during the pandemic simply weren’t sustainable. Many homebuyers are adjusting to the new normal.

“With both mortgage rates and home prices expected to turn the corner in 2024, record high unaffordability will become a thing of the past, though… the return to normal won’t be accomplished within the year. This prediction hinges on the expectation that inflation will continue to subside…” Realtor.com forecasts.

4. Housing prices may keep rising.

For the second consecutive year, home prices are expected to remain fairly stable. Forecasts call for an annual price increase of anywhere from 0.9 to 2.9 percent. For homeowners, this could be beneficial. You may have an opportunity to sell your house at a good price—depending on when you list and the conditions of your market—and then purchase a new home in your price range. 

It could be worth weighing if it’s smarter to list now and get into your next house before prices rise any higher. For expert insight into your market, contact your local Academy Loan Officer.

5. You can find a home that meets your current needs.

The past few years have brought countless changes. If you’ve transitioned to working hybrid or fully remote, you may be spending more time at home than you anticipated. Does your house still fit your life?

If your family has grown and/or you’re working remote, you may need more space. If children have left, it may be time to downsize. You might also be hoping to reduce your cost of living and relocate. You and your family’s current needs can help you decide if the time is right.

For those ready to make a change, many factors indicate this is the year to do it. “Homebuyers who have been priced out in the last year should find optimism in 2024,” Jessica Lautz, Deputy Chief Economist for the National Association of REALTORS®, says.