Spring Selling Season: Investor Must-Knows about Mortgages
Spring selling season
With the spring selling season underway, housing starts in the United States are rising. In February, housing starts for both single-family and multifamily homes increased above analysts’ expectations. This led to an overall growth of 5.2% over January. After the increase in February, US housing starts set an annualized pace of 1.2 million, which is ahead of analysts’ expectations.
The spring selling season is considered the busiest time for real estate transactions. This summer, it looks like the Market will favor sellers more than buyers due to a short supply. At the end of February, the housing inventory was down by 1.1% YoY (year-over-year). The median price for existing homes in February rose by 4.4% YoY. In fact, home prices have increased for the past 48 months.
It’s estimated that the rate of growth in US housing starts will continue to fall in the coming years, as shown in the above chart. As the rate of growth in housing starts declines, the supply side will weaken more. As a result of the short supply, homes will get expensive in the United States. In such a scenario, potential homebuyers need to save as much money as possible on mortgages.