Whether you’re a homeowner with a home to sell or a buyer hoping to find a home to buy, spring is a good time to do it. It’s the housing market’s busiest season and it’s just getting underway. Mark Fleming, chief economist at First American Data & Analytics, says a large share of the year’s home sales will happen over the next few months. “The spring season is typically the busiest time of the year for the housing market,” Fleming says. “According to data from First American Data & Analytics, historically approximately 36 percent of existing-home sales for the year occur from March through June.” But why is spring the season when Americans traditionally look to make a move? Well, Fleming says the reasons range from better weather to the approaching end of the school year. Whatever the reason, though, it’s the time of year buyers get active and sellers aim to make a deal. (source)

Everybody wants their home to look great when they put it up for sale. After all, the better it looks, the more likely it’ll sell quickly and for the right price. But how far do homeowners need to go when prepping their home for buyers? Well, according to a new survey from the National Association of Realtors, they may want to consider bringing in a professional. The NAR’s Profile of Home Staging found that nearly half of seller’s agents said having a home professionally staged helped it sell quicker. Among all agents, 20 percent said staging increased the price homes sold for, raising them up to 5 percent higher than similar homes in the area that weren’t staged. Jessica Lautz, NAR’s deputy chief economist and vice president of research, says putting in the extra effort can make a difference in today’s market. “As days on market has lengthened for home sellers, it is not a surprise to see the return of home staging as a tool to attract potential buyers,” Lautz said. “Buyers want to easily envision themselves within a new home and home staging is a way to showcase the property in its best light.” (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage loan applications slowed last week from one week earlier. The decline follows four straight weeks of increasing demand from buyers. Mike Fratantoni, MBA’s senior vice president and chief economist, says this time of year typically sees more activity. “Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season,” Fratantoni said. “After four weeks of increasing purchase activity, volume declined a bit this week even with another small drop in mortgage rates.” Average rates were down, though only for 5/1 ARMs and 30-year fixed-rate loans with conforming balances. Jumbo loans and 15-year fixed-rate loans both saw increases, while loans backed by the Federal Housing Administration were unchanged from one week earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

There are a lot of numbers to remember when calculating how much it’ll cost to buy a home. There’s the price of the house, your mortgage rate, the amount of your down payment, property tax, closing costs, and insurance. They’re all important, but perhaps the most important number to remember is your prospective monthly mortgage payment. After all, that’s the one you’ll be seeing every month – long after you’ve paid the upfront costs of buying a home. The Mortgage Bankers Association knows this, which is why they keep a monthly measure of median mortgage payments. Their Purchase Applications Payment Index tracks mortgage payments based on the amount applied for by home buyers applying for loans. According to the most recent report, mortgage payments are up. In fact, they hit $2,061 per month in February. Edward Seiler, MBA’s associate vice president and executive director of the Research Institute for Housing America, says mortgage rates contributed to the increase. “Higher mortgage rates and home prices led to continued erosion in home buyer affordability in February,” Seiler said. “Given ongoing economic uncertainty and the likelihood of a recession, MBA expects mortgage rates to decline as this year progresses, which will help affordability.” (source)

There are several different monthly reports that track home sales. There’s a report that covers sales of previously owned homes and one that covers new home sales. The National Association of Realtors also tracks pending sales – homes that have a signed contract to buy, but have yet to close. But why track pending sales? Well, they’re a good early indicator of upcoming final sales. In other words, if contract signings are rising, next month’s sales numbers will most likely rise too. That’s why the NAR’s most recent numbers, showing pending sales up for the third straight month, are an encouraging sign that the housing market may have turned a corner. Lawrence Yun, NAR’s chief economist, thinks so. “After nearly a year, the housing sector’s contraction is coming to an end,” Yun said. “Existing-home sales, pending contracts, and new-home construction pending contracts have turned the corner and climbed for the past three months.” Those are all good signs that activity is ramping up as the spring season gets underway. They may also be signs that the market has finally started to stabilize. (source)

Early spring is traditionally when the housing market picks up and home buyers start shopping for a house to buy. So far, this year looks no different. According to the National Association of Realtors’ consumer website, active listings and time on market both shrank in March, which is a sign that buyers are starting to get busy. But while the spring market is showing signs of activity, how it ultimately proceeds will largely depend on mortgage rates. Danielle Hale, the website’s chief economist, says buyers are paying attention to their fluctuations. “Signs show that buyers are active in the spring housing market, even if they aren’t as numerous as they were during the pandemic,” Hale said. “Amid fewer new choices on the market and still rising home prices, home shoppers have shown that they are very rate sensitive, only jumping back in the market when rates dip, and so what happens with rates this spring will likely play a strong role in determining whether the housing market bumps along or picks up speed this year.” (source)