In the realm of commercial real estate investment, the pulse of the housing market beats as a vital indicator of broader economic health and investor sentiment. While the focus of commercial investors may primarily center on office buildings, retail spaces, industrial properties, and multifamily complexes, understanding housing market trends holds paramount importance. With these trends serving as a vital indicator of consumer confidence, demographic shifts, and broader economic dynamics, all of which directly impact the demand for commercial spaces. Fluctuations in home values, mortgage rates, and homeownership rates can signal changes in purchasing power, migration patterns, and workforce housing availability, thereby influencing investment strategies and risk assessment for commercial investors. Here at ARC Properties we think no differently as we serve not only the Commercial Investor, but the Residential as well. So let's dig in and see what the professionals are saying about what’s in store for this season.
Odeta Kushi, Deputy Chief Economist, First American:
“. . . it seems our general expectation for the spring is that we will see a pickup in inventory. In fact, that already seems to be happening. But it won’t necessarily be enough to satiate demand.”
Lisa Sturtevant, Chief Economist, Bright MLS:
“There is still strong demand, as the large millennial population remains in the prime first-time homebuying range.”
Danielle Hale, Chief Economist, Realtor.com:
“Where we are right now is the best of both worlds. Price increases are slowing, which is good for buyers, and prices are still relatively high, which is good for sellers.”
Skylar Olsen, Chief Economist, Zillow:
“There are slightly more homes for sale than this time last year, and there is still plenty of competition for well-priced houses. Buyers should prep their credit scores and sellers should prep their properties now, attractive listings are going pending in less than a month, and time on market will shrink in the weeks ahead.”
Jiayi Xu, Economist, Realtor.com:
“While mortgage rates remain elevated, home shoppers who are looking to buy this spring could find more affordable homes on the market than they saw at the same time last year. Specifically, there were 20.6% more homes available for sale ranging between $200,000 and $350,000 in February 2024 than a year ago, surpassing growth in other price ranges.”
If you’re looking to sell, this spring might be your sweet spot because there just aren’t many homes on the market. Sure, inventory is rising, but it’s nowhere near enough to meet today’s buyer demand. That’s why they’re still selling so quickly.
If you’re looking to buy, the growing number of homes for sale this spring means you’ll have more choices than this time last year. But be prepared to move quickly since there’ll be plenty of competition with other buyers.
Bottom Line
No matter what you're planning in the residential or commercial sector, let’s team up to confidently navigate the busy spring housing market. Reach out to us today to start a discussion on how we can serve you.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.