Warmer weather across the country is drawing more people to look at open houses and available homes this month, says Jonathan Smoke, realtor.com®’s chief economist.
Here are four current housing market factors that will likely translate into greater sales this April:
1. Low mortgage rates: Mortgage rates have moved lower this month and are hovering near the lowest averages in the past three years. Lower mortgage rates help boost home buyers’ purchasing power as well as buyers’ ability to qualify for a mortgage.
2. More urgency: Many buyers were frustrated last year with their inability to buy. This spring, they’re heading to the housing market more determined. Mortgage applications for home purchases are up 20 percent compared to last year.
3. More searching: Realtor.com® reports a record number of people searching and looking at its website for homes. Nevertheless, there are 2 percent fewer homes for sale that they’ll find when compared to last year.
4. Faster sales: The time that listings spend on the market has dropped dramatically. Nationwide, the median days on the market dropped 14 days in the first two weeks of April compared to the first two weeks of March.
Some of the places seeing the fastest sales are in Colorado, including Aurora, Arvada, Littleton, and areas of Denver, where the median age of a listing is less than 7 days. Gladstone, Ore., and areas of Seattle are also seeing the median age of listings at less than 7 days.
Other areas seeing median listing ages of less than two weeks are: Cambridge, Mass.; Pacifica, Berkeley, Los Altos, and Sunnyvale, Calif.; Centreville, Burke, and Henrico, Va.; Berkley, Mich.; Colorado Springs, Colo.; Boise, Idaho; Clifton, N.J.; Salt Lake City and Sandy, Utah; Fort Worth, Texas; Louisville, Ky.; and Buffalo, N.Y.
Source: “Mid-April Forecast: Warm Weather Will Bring Out Home Buyers,” realtor.com® (April 15, 2016)