Spring is around the corner in my neck of the woods. This week I spotted a batch of purple croci as well as a lone daffodil in bloom.
With spring flowers typically comes the seasonal onslaught of real estate listings.
The good news for homebuyers is that interest rates are falling. The bad news is that relief may be short lived, prompted by a shortage in housing stock.
Even so, prices could be softer this spring. The median home price surged nearly 50% from $322,000 in 2020’s second quarter as the pandemic began, to a peak of $479,000 at the end of 2022 when the pandemic was subsiding, Census data shows. That was the fastest run-up since the early 1960s.
The median price has since edged back to $417,000, a side effect of Fed rate hikes that at one point pushed the average interest rate on a 30-year home mortgage to nearly 8%, the highest in a quarter century.
Members of Congress are calling on the U.S. Federal Reserve to cut rates to bring down mortgage costs for consumers and encourage construction. And states are toying with rent-control measures and programs to boost supply.
What does this mean for homebuyers? Is it a better time to be a renter? If you’re in the market for a home, I want to hear about the experience. Share your insights via onthemoney@thomsonreuters.com. I read every email!
