As the spring season approaches, the housing market is poised for another active phase, with the potential for sellers to reap significant rewards. For the week ending March 13, the 30-year fixed rate mortgage held steady at 6.65%, a slight increase from the previous week's 6.63%. This stability in mortgage rates comes as the housing market anticipates its most vibrant period, typically characterized by heightened activity from both buyers and sellers.
Spring is traditionally when homebuyers are most active, aiming to finalize purchases before summer begins and well ahead of the new school year. This seasonal trend indicates that sellers can often achieve better returns if they list their homes between March 15 and July 31. However, the optimal time to sell varies annually and can depend significantly on local market conditions.
The 2022 spring housing market was notably affected by the Federal Reserve's decision to increase borrowing costs in March, which shifted much of the market's typical spring activity to the fall. This year, as mortgage rates continue to fluctuate, it remains uncertain whether the pattern of last year's spring home shopping season will repeat.
"it's not certain that this year's spring home shopping season will follow last year's pattern." – Zillow
For those considering listing their property, Joel Berner, a senior economist at Realtor.com, emphasizes the importance of timing.
"This is the right time of year to list to get ahead," – Joel Berner, senior economist at Realtor.com
Despite the promise of a lucrative selling season, several factors influence the timing and amount of the premium sellers might receive. While mortgage rates play a significant role, other elements, such as local economic conditions and housing supply and demand dynamics, also contribute.
In 2024, homes listed in the last two weeks of May fetched an average premium of 1.6% over other times of the year. This suggests that strategic timing in listing can yield financial benefits amidst fluctuating market conditions.
As the housing market continues to normalize from what has been an intense seller's market in recent years, potential sellers should remain vigilant about market trends and conditions. Mortgage rates' volatility adds another layer of complexity to this dynamic market landscape.