Spring Real Estate Market To Bounce Back?

Many people always look forward to the coming of spring when flowers are in full bloom, the weather is more favorable and the Super Bowl is taking place. Spring is also the busiest time for the residential real estate market as it marks the start of the home selling season. Many homes are on the market, more buyers – notably families -- are looking for new homes, there’s stiff competition and prices normally go up.

Real estate experts would likewise tell you that spring is one of the best times to sell your house. Most homeowners who failed to sell their homes earlier would normally relist their properties during spring time. Just be sure that you don’t wait very long to put your house on the market for sale.

The National Association of Realtors (NAR) reports that homes on the market during the winter are selling. Buyers are taking advantage of the low mortgage interest rates, declining prices and the huge volume of inventories in the market. NAR’s chief economist David Lereah has expressed optimism that current home sales will continue to go up this year and even until 2008. This trend will remain despite a slowdown in the sale of new homes and a weaker home sales compared to the record set in 2005. Lereah added that mortgage interest rates continue to be favorable and an expected rise this year would give potential buyers some time to weigh purchase decisions.

The National Association of Home Builders expects home sales in spring to stabilize this 2007 after experiencing declines in 2006 in 28 states especially in former housing boom areas such as Arizona, Florida, Virginia, Nevada and California. Meanwhile, the National Association of Realtors’ survey of housing conditions across the U.S. last year showed that 20 states recorded home sales increase during spring notably in Alaska, Arkansas, Texas, North Carolina and Vermont.

Other realty groups are positive over the recovery of the housing market this spring although no new records are seen to be established. One indicator they consider is the pending sales for January 2007. Pending sales refer to signed purchase agreements that have not been closed yet. Also, buyers who backed out of the market late last year are expected to return to the market this spring. Sellers, for their part, are seen to have more motivation than in previous months.

A Boston mortgage company shares this optimism as it sees a bright housing market this spring. With reduced home prices, low interest rates by historical standards and a rise in consumer demand, the Summit Mortgage LLC’s chief executive sees a more affordable and solid housing market this 2007 than in previous years. Interest rates are expected to remain between 6.3 and 6.5 percent throughout the year, according to Freddie Mac officials. An article in the Chicago Tribune also revealed that volume of re-listings and home sales in Chicago went up in January. Real estate experts there believe these are signs that home sellers may be returning to the market.

It’s not very clear when the existing-home market will improve but hopes are high that people – new buyers and sellers -- will go back to the marketplace this spring. Economists and realtors alike are keeping this positive outlook despite a confirmation that the 2006 real estate market experienced its biggest yearly sales decline in nearly two decades, based on the final tally of the National Association of Realtors.

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