As the spring selling season approaches, all players in the housing market are poised for the trading to begin. It is truly fundamental for buyers and sellers to understand the market before they make any decisions on something as expensive and important as a home. Housingwire staffer Brena Swanson talks to Ralph McLaughlin, chief economist of Trulia, and points out five things that define this year's housing market. Swanson writes,
McLaughlin explained that inventory of all homes for sale is down over 35% over the last four years.
“We are in a time of short supply, which is great news for sellers because they will likely be faced with multiple offers due to the little inventory out there,” he said.
But on the flip side, he noted that it’s not so great for people looking to buy a home. “They will be up against a lot of other people and against a short supply of existing homes,” McLaughlin said.
Interestingly enough, he said that the inventory of starter homes, or the homes that are in the least expensive, are probably at the lowest supply they have been in four years.
Other trends include:
- It's finding a home that's tough to buy
- It's still cheaper to buy than rent
- Don't panic over possible interest rate increases
- Buyers should be aware of bargain homes