RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Low Inventory, Rising Rates and a Bustling Spring Market

Home House Canary
By Liz Dominguez
March 22, 2018
Reading Time: 3 mins read
Low Inventory, Rising Rates and a Bustling Spring Market

Photograph of pink blossoms with blurred house and yard visible in the distance.

Spring is here, and, with it, a busy home-buying and -selling season. While real estate markets can vary widely by region, housing is currently seeing similar developments across the country.

The Kiplinger Letter, an online source for personal finance advice and business forecasts, recently shared spring market trends. According to Kiplinger’s David Payne, staff economist, and Rodrigo Sermeño, reporter, REALTORS® can expect tight inventory, increased buyer competition and a rise in interest rates across the board this spring.

The biggest obstacle? Not enough homes, particularly in heavily-populated areas and others that are growing quickly.

“Buyers should expect tight inventory of existing homes across the nation, particularly in fast-growing metro areas such as Denver, Dallas, Seattle and Portland—but also most major metros in the West and in the South,” say Payne and Sermeño.

Buyers are out in full-force, and with less inventory to choose from, they are flocking to any available homes in their price point and submitting aggressive bids.

“Buyers should expect more competition for entry-level homes, both existing and new,” Payne and Sermeño say. “Tight inventories of existing homes will likely lead to bidding wars in many markets.”

What the industry sorely needs right now is new construction, and that’s where the South is prospering.

“The South is seeing strong growth in residential construction, including starter homes,” say Payne and Sermeño. “Builders are gradually adding entry-level homes in certain markets in the South, such as Dallas, Phoenix and Atlanta. Some builders are focusing on peripheral areas around these cities, where it is cheaper for them to build entry-level homes.”

According to The Kiplinger Letter, buyers in the South and West can expect new homes on the market later this year, especially duplexes and townhomes; however, new-construction growth is generally slow across the U.S. due to high costs and insufficient land to build.

“Builders will continue to gradually bring starter homes to the market, but the rising cost of labor and building materials will make it difficult,” Payne and Sermeño say.

While skyrocketing prices have been a concern with tight inventory, REALTORS® can breathe a small sigh of relief, as growing home prices seem to be slowing down, if only slightly, for the foreseeable future.

“Home price growth will slow a bit, to 5 percent from 6.5 percent last year,” say Payne and Sermeño. “Price appreciation has been strong for a while, and some areas are seeing demand hurt by affordability problems, especially for high-end homes; however, the slowdown this year will only be modest because of continuing lack of inventory, especially at the low-to-middle price ranges.”

REALTORS® are watching the market closely, as one factor could change the status of today’s market. Rising interest rates are homebuyers’ biggest concern and contributing to this spring’s flurry of home-buying activity.

“The prospective rise in interest rates this year and next is actually boosting buyer demand to purchase before rates rise further, according to REALTOR® surveys,” Payne and Sermeño say. “Next year, once it appears that mortgage rates will be stabilizing, then the higher rates will have a somewhat depressive effect on prices and demand.”

Dominguez_Liz_60x60_4cLiz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

Tags: Home PricesHousing InventoryInterest RatesKiplingerKiplinger LetterMortgage RatesReal EstateSpring Housing MarketSpring Real Estate Market
ShareTweetShare

Liz Dominguez

Related Posts

Real Estate Relationship Building in the Digital Age
Best Practices

Real Estate Relationship Building in the Digital Age

June 30, 2022
Freddie Mac Takes Further Action to Help Renters Achieve Homeownership
Best Practices

Freddie Mac Takes Further Action to Help Renters Achieve Homeownership

June 30, 2022
These Cities Have the Largest Share of Million-Dollar Homes
Best Practices

These Cities Have the Largest Share of Million-Dollar Homes

June 30, 2022
Homebuying and Climate Change: The Riskiest and Safest Places in 2022
Best Practices

Homebuying and Climate Change: The Riskiest and Safest Places in 2022

June 30, 2022
HGTV Launches 2022 Ultimate House Hunt
Best Practices

HGTV Launches 2022 Ultimate House Hunt

June 30, 2022
Propy Plans Sale of New NFT Property in Orlando, Florida
Best Practices

Propy Plans Sale of New NFT Property in Orlando, Florida

June 30, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

Break a Leg: How Acting Techniques Can Enhance Your Pitch

Authenticity, emotion and empathy are all a big part of a successful client presentation, and actors have the answers. Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • Real Estate Relationship Building in the Digital Age
  • Freddie Mac Takes Further Action to Help Renters Achieve Homeownership
  • These Cities Have the Largest Share of Million-Dollar Homes

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.