Are you onboard that the real estate market is turning and it’s finally time to get off the fence and do a little home shopping? As the market continues to heat up and sellers regain control, here are a few trends to consider.

Low Mortgage Rates

The 30-year fixed interest rate is edging up. A few months ago you could find rates in the low 3% range and now the rates are closer to 4.25%. While rates have crept up in the past few months, they’re not going to skyrocket suddenly, says Erin Lantz, director of mortgages at Zillow Mortgage Marketplace. “Even if the Federal Reserve starts to scale back its stimulus program, the Fed will still help keep rates low for the remainder of the year in order to accelerate the housing market recovery. As the Fed withdraws support and the economy recovers, we expect rates will rise gradually over the next 18 months.”

Slim Pickings

As of February, slightly less than 2 million homes were for sale nationwide. This represents a supply of less than five months (6 months’ supply is considered “normal”). During the same period last year, the supply was 6.4 months. In a dozen markets there is less than a three-month supply of homes on the market. Granted, rising home prices should lead to more inventory (and ultimately more sales because it encourages new construction and encourages homeowners to sell), but one key question is whether prices will rise enough so that for-sale inventory will hit bottom and start expanding again.

Bidding Wars

As many of our markets heat up, bidding wars are quickly becoming the norm, especially in places such as California, Boston, Washington, Seattle, and New York. This poses a challenge, in particular, for first-time buyers seeking entry-level properties in Las Vegas, Tampa, and other markets where investor demand is particularly strong. Who do you think wins the bidding competition- investors with all-cash offers or buyers who need to obtain financing and have the home appraised at their offered price? If you guessed the all-cash buyer, you’re correct.

We would love to help you get off the fence and find your dream home. Please call the Henderson Properties Sales Team at 704-544-0253.