April marks the beginning of the spring surge in real estate, yet there are current conditions that are impacting this. In fact, according to the National Association of Realtors, there is a 9% drop in sales activity nationwide from last year at this time. Three predominant reasons explain this:
- Lack of Inventory: new homes are needed to entice homeowners to buy up and sell their current homes.
- Affordability: prices are much higher and buyers are slow to act.
- Mortgage Requirements: while rates are rising, the criteria for qualifying is stringent.
Still, prices are predicted to rise and the level of activity will increase in the months to come. This map from the latest Realtors Confidence Index is a good overview of their findings.
Remember that real estate is local. The San Francisco Bay Area down through Silicon Valley is experiencing multiple offers that drive up prices. Where the economy is strong, statistics are skewed. Let’s talk about your real estate needs.