More homes are finally on the market this spring. Are buyers bold? : NPR

It’s spring, and signs of “for sale” appear in front of homes around the country.

However, with so much uncertainty in the economy, it is clear whether the spring housing market will heat up…check our forecasts.

Both mortgage fees and home prices are high

Certainly not the cheapest time to buy a house. Currently, the average 30-year mortgage rate is 6.65%, a slight decline since January, but it is still quite high.

Many analysts expect mortgage rates to remain at this level for now, especially as the Federal Reserve is unlikely to cut interest rates until later this year.

Selmahep, the chief economist of collaboration at real estate analytics firm, says market volatility could lower mortgage rates. That’s because mortgages usually follow a 10-year financial obligation yield. This is affected by investors’ concerns about the economy.

“It’s because of concerns about the rising risk of a recession, and concerns about the slowing of the job market,” Hep says.

However, there are other factors that keep your mortgage rate high. Among these, inflation policies such as tariffs are included.

Another deterrent for buyers is the increased costs of buying a home. Median home prices have risen 47% over the past five years.

Good news for buyers: More homes are on the market

Last year was the latest existing home sales market since 1995. It wasn’t that people didn’t want to buy it.

The big question right now is whether the freeze market will start to thaw. The signs suggest that things are beginning to change and more inventory will be coming to the market.

In February, existing homes for sale increased 17% compared to last year, followed by 10% in March compared to a year ago.

Over the past few years, there have been concerns that the “lock-in effect” will never move towards lower-interest homeowners as mortgage rates have risen. However, the recent increase in listings suggests that people will move over time.

More lists need to be converted to more sales. Also, returning to the office is spurring some people to get closer to the city as they have to be in the office a few days a week.

Increased inventory gives buyers better footing, giving them more options and more leverage.

For sellers, more competition can mean that prices must be more flexible. It’s already beginning to happen. According to Realtor.com, the highest price in March since 2016, more than 17% of active listings included price cuts in March.

Economic uncertainty clouds forecasts

Jeremy Memem, 40, is about to become a homeowner. For the past year, he and his wife have been searching for a home in Fairfield County, Connecticut.

A few weeks ago, they offered $161,000 at the asking price of the house. But their bids were not yet sufficient.

This week they lost again – they were one of 17 offers. Maysem says they may decide to continue renting for a while.

“I’m a little nervous… all the different tariffs,” he says. “What’s going to happen? What won’t happen? Maybe just wait and just watch another year or two will be in our greatest interest.”

Others may have the same choice. Pending lists, contracted homes, fell 5.2% year-on-year in March, according to data from Realtor.com.

Those worried about losing their job may not want to commit to a big down payment right now.

“They tend to be put,” Hep says in Cotarity. “Unless they have to do it, they won’t be moving.”

And in addition to uncertainty, the cost of homeownership, which has been fairly stable, has skyrocketed in several locations, including home insurance and HOA fees.

It can make buying a house feel more like a gamble than before.

In addition to everything else, the payment method for agents has changed

Last year, a settlement with the National Association of Realtors brought about some major changes for both buyers and sellers.

Before these new rules are enacted, sellers usually pay both their own agents and buyer agents. Now it is no longer given. It is up to the seller whether or not to pay the buyer’s agent and how much it is left to the seller.

The second major change is that buyers who want to work with real estate agents must sign an agreement to set up compensation for the agent before they can see the home.

So, the only way to see a house without signing anything lately is to go to an open house.

Many real estate agents say the system hasn’t really changed much. But the new rules mean more to negotiate amidst the possibility of a very expensive transaction becoming a tricky process already.

“There’s still some confusion as to who will pay that percentage,” says Mesem, a shopper in Connecticut.

He says the whole process of looking at home and making offers can be exhausting and time-consuming.

“A lot of our free time is spent looking at things like this,” says Masem. “It feels like we’re missing out on what we want to do.”