Spring is HERE!!
I may be a bit too optimistic. Yet after three weeks of snow and cold reminiscent of my childhood in the Midwest, Hampton Roads is ready for the 50's and 60's projected for this week.
Yes, we have nothing to complain about! Boston, you took the brunt of the abuse but weren't far ahead of the Kentucky, Michigan and host of other states with record snow falls and/or horrific traffic snarls due to the "normal" winter weather.
Rather interesting that the snow and cold that all those kids were told about by parents finally showed up!!
With the break in the weather, the already strong Spring selling season should really heat up. Even with weather, I have had the strongest Spring in four years!!
For the past three years, buyers and sellers stayed on the sidelines while interest rates were low and buyer demand(for sellers) was starting to show until the second half of the year. Thus, the sales time frame was inverted: Spring slow Fall fast.
But with rates for the fourth year in a row around and right now below 5%(closer to 4% right now), mortgage credit availability way up and FHA lowering the MIP premiums, buyers are out in force.
Many of the buyers are sellers looking to move up or downsizing to retire. Thus, 2015 should see exponential activity caused by the $200,000 home seller, buying the $250,000 house so that seller can purchase a $350,000 home and so forth.
The Spring season strength is also seen in new construction. Builders again believe that their product will move. And it is all because of what I noted above. As the lower price homes sell, eventually a home buyer seeks to move to new construction versus resale.
Also, home owner strickly wanting new construction provide needed inventory to buyers looking for their next house.
Once the cycle begins, it is like any natural cycle in nature: it becomes self sustaining!! Normal factors of the market keep this self-sustaining cycle in appropriate parameters to continue for years.
Only the enzyme of "frantic" buying caused by too little inventory for too many buyers would cause the cycle to spiral out of control as relates to home prices.
With the pent up demand caused by 5+ years of buyers "waiting for the market to improve", it is possible in the later phases of this self-sustaining cycle that prices will once again skyrocket.
Though benefiting a few sellers over a short period of time, such skyrocketing values have very negative affect upon a normally healthy real estate market.
All this said, you should know now is the time to buy. Rates and prices will only go up as this cycle reaches maximum operating potential.
Call me today at 757 680-6546 to make your dreams come true!