3 On Your Side: Spring Housing Market
By Jim Donovan
PHILADELPHIA (CBS) — Spring traditionally brings new life to the real estate scene.
But as the housing market continues its recovery, some buyers and sellers may be getting mixed messages. 3 On Your Side consumer reporter Jim Donovan takes a look at whether it’s the best time to get out there and hunt for a home.
Home prices and home sales seemed to take off last year, but the harsh winter slowed things down.
January and February put a chill on the buying and selling, by most tallies. But with warmer weather around the corner, the market traditionally heats up too.
“People take off their heavy coats and now are looking for more improvement in their lives and also it provides for people to visit more homes in nicer weather,” said Lawrence Yun with the National Association of Realtors.
In addition to buyers getting out and about, the National Association of Realtors expects overall expansion in the job market and pent-up demand to boost the spring market.
The recent drop in foreclosures is a promising sign too.
Still, there are some pitfalls, including mortgage rates, creeping upward.
“There are some frictions in the market. The underwriting standards to get mortgages still remain accessibly tight. Furthermore, there is a lack of inventory in many markets, so even though there may be buyers, if they see only few choices, they are not that enthusiastic about making that decision,” said Yun.
Even with tight inventory, buyers are still expected to be price-savvy. Sellers shouldn’t be tempted to aim too high.
Real estate markets vary widely, often depending on what part of the country your looking at. So who has the upper hand in our area? Well a spring survey by Zillow found buyers have an edge over sellers right in the Philadelphia area.