Buyer Demand Is Blooming

Last fall, some “experts” predicted that the residential real estate market would be a disaster. But, the emerging spring housing market is nothing close to those dire warnings.

According to two separate reports, made available to us by industry resource KCM, buyer demand has dramatically increased over the last three months, as we head into one of the busiest times of the year.

Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show increasing buyer interest.

Why the increase in demand? Increased buying power.

According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.

“The income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”

As we mentioned in last week’s blog posting, new listings were up 21% on Cape Cod last month when compared with March 2018 and the number of days a home is on the market has decreased.

We know from working with our own buyer clients that those who hesitate often lose out as properties that are priced right aren’t available long.

While inventory of homes for sale has increased, the pace at which they are selling indicates that supply and demand are running neck and neck. This is an advantageous time to market your home, as buyers are looking to be settled on Cape in time for the summer.

If you have questions about whether this is the right time for you to buy or sell, we’d be happy to meet with you and discuss your options. Please get in touch via the comment section or by contacting us at 508-568-8191 or [email protected].

We look forward to meeting with you.

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Our favorite real estate cartoon from last week.

Enjoy the improving weather…

Mari and Hank