Home buyers this spring will meet out-of-this-world prices and unsparing competition—a real estate rush.
According to Clear Capital’s recently released Home Data Index (HDI) Market Report, the national median days on market is 43 days, down from an 85-day stretch seen in January 2012. Days on market in Denver, Colo., Lincoln, Neb., and Raleigh, N.C., are coming in under two weeks, while days on market in Fresno, San Francisco and San Jose, Calif., and Portland, Ore., and Seattle, Wash., are finishing in under three weeks.
“Along with an increase in temperatures, the spring season also brings out the buyers and an increase in demand to the housing market, which most often translates to faster price growth and a decrease in marketing times,” says Alex Villacorta, vice president of Research and Analytics at Clear Capital. “But what’s great news for homeowners—particularly those looking to get out of negative equity or sell outright—is unfortunately bad news for prospective buyers. This springtime uptick in demand is likely to put buyers in a major time pinch in areas where marketing time is already lightning fast.”
Home price growth in the first quarter of 2017 was 0.9 percent, according to the report, with quarterly growth across regions between 0.8 percent and 1 percent. Prices grew 1.8 percent quarterly in San Antonio, Texas, making it the fastest growing metropolitan market, while quarterly prices in San Jose, Calif., remained at a standstill, posting no growth.
“This situation, coupled with the already precarious affordability situation for buyers, can lead to a self-fulfilling prophecy of sorts for the market as a whole, one where buyers rush to purchase homes at or above asking price in fear of waiting too long and losing out—pushing prices up and pulling marketing times even lower,” Villacorta says. “Buyers will need to remain vigilant this spring and constantly keep their eyes peeled for new supply entering the market, and, most importantly, be wary of rushing to purchase at sky-high prices.”
Long and Foster Real Estate