Despite ongoing market volatility causing apprehension for some, the spring real estate market is showing unexpected signs of warmth. Recent data reveals that more buyers are forging ahead with home purchases compared to April 2024, marking a notable shift in market sentiment.

Headlines are talking about the inventory of new homes and how we’re back at the levels not seen since 2009. And maybe you’re reading that and thinking: oh no, here we go again. That’s because you remember the housing crash of the late 2000s and you’re worried we’re repeating the same mistakes.

 More people are taking steps to buy a home. And, if your client has been waiting for the right time to move, this may be the sign they’ve been looking for.

For the past few years, a lot of would-be homebuyers hit pause on their plans. With rising mortgage rates and affordability challenges, buying just didn’t seem doable. But now, more of them are getting back out there. That’s because they’re getting used to the fact that this may be the new normal for the market – especially as forecasts show mortgage rates may be starting to stabilize. According to the National Association of Realtors (NAR): 

Now that we're past the holidays, many potential homebuyers are asking if now is a good time to purchase real estate.

In the ever-evolving world of real estate, one question is consistently top-of-mind for prospective homebuyers and real estate professionals alike: "What is the future of mortgage rates?"  While the current trend is a slight decline in mortgage rates, the expectation of a return to the rock-bottom rates of 3% seen in early 2021 seems improbable without another significant economic downturn.

Over the past year or so, a lot of people have been talking about how tough it is to buy a home. And while there’s no arguing affordability is still tight, there are signs it’s starting to get a bit better and may improve even more throughout the year. Elijah de la Campa, Senior Economist at Redfin, says: