Monday and the weather is warming up...

Thankfully it is going to hit 50 degrees here today, after a week of sub freezing icy days and nights. March is right around the corner, and the spring real estate market is only weeks away, or a week depending on when you believe it begins.

So what is the spring market going to look like? Will sales go up, will there be more inventory than in past years, will rates go up or down? I asked a top agent for his opinion, and he shared three things that I think give great insight. Here goes...

"Well, to start I think that anyone who says they know what rates are going to do are guessing and presenting it as fact. There is so much going on in the economy, from proposed tariffs to government job cuts, food prices remaining high, inflation an unknown, and nervous markets, that we should not worry about rates and focus on three things.

First, as I talk to agents across the country in masterminds and classes, it seems like most have buyers in their pipeline. But the sense of urgency is low with many, and finding homes remains a challenge as inventories remain low. But there are buyers, and that bodes well for spring and the rest of 2025. I believe most buyers have accepted that rates are not coming down dramatically if at all, and they need housing.

Second, if you have buyers looking at new builds it is time to get in contract. Lumber and material prices will be going up, perhaps dramatically and that will cause a jump in new home prices, perhaps a huge jump. How do I know this? Rebuilding after the wildfires and massive floods is already sucking up materials, and that is only going to get worse, meaning a supply and demand price increase that the builders will have to react to. After past hurricanes it was normal to see monthly price increases, so your buyers need to move now and lock in their price.

Last, we know sellers have been reluctant to give up their 3.5% interest rate and / or have been unwilling to sell as they cannot find a home to buy, but each year that goes by increases homeowners needs for a different home. Desire to move school districts, job and life changes, needs for more space or different home layouts... none of these have changed and at some point they have to sell and move.

So I feel good, not great but good, about the spring and remainder of 2025."

So what do you think?

As always, I am here to help your clients with there mortgage needs, with low fees and great rates, so message me and let me show your clients what I can do to help them.