It’s about that time: the time when real estate investors start to analyze and interpret spring housing market trends that are starting to become more apparent. After all, the spring homebuying season is typically one of the most active times of the year for homebuyers and investors alike. It’s worth noting, however, that not all spring housing market trends are created equal.
It’s entirely possible for some of today’s trends to be nothing more than flashes in the pan; they can come and go in the blink of an eye. On the other hand, there are those spring housing market trends that could shape how the rest of the year plays out; the ones that really pay to keep an ear to the ground on.
It happens every year: spring ushers in a trend that resonates in one way or another throughout the rest of the year. That said, it’s in your best interest as an investor to identify said trends and use them to your advantage. Let’s take a look at three of the spring housing market trends I believe to be the most prominent and what they mean for investors moving forward.
SPRING HOUSING MARKET TRENDS
1. Prices will continue to rise at a slower pace
With the onset of the latest recession approximately a decade in the rearview mirror now, it’s safe to say the housing market has finally gained the traction it so desperately sought for years on end. Nearly every fundamental indicator is better off now than it was even just three years ago. Last year, for example, prices rose for the first 10 months. And if the first quarter of this year is a good indicator, there is no reason to believe the momentum hasn’t carried over. A recent Veros Real Estate Solutions forecast suggests homes could appreciate by as much as 3.5 percent over the next 12 months, and it’s very likely that spring will serve as the catalyst.
It’s worth noting, however, that at that rate, price appreciation rates will have tempered from the previous quarter. So while this spring should see homes continue to appreciate, expect them to do so at a slower pace for the foreseeable future.
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