Spring is the season of new beginnings but for many potential homebuyers it's not going to feel too fresh
Spring is the season of new beginnings but for many potential homebuyers it’s not going to feel too fresh.
The same old problems of low supply and rising prices are set to make the spring buying season challenging according to the latest assessment from insurer and finance firm Nationwide.
"As we head into spring and the traditional season when sales heat up, buyers will find that desirable homes won't be on the market for long," said David Berson, Nationwide senior vice president and chief economist. "Today, the average home is on the market almost half the length of time that it was six years ago."
While in theory the fast-selling market is good news for sellers, unless they can find somewhere to move to equally fast then they too face a challenging time.
Meanwhile, budgets will be pressured as prices rise along with higher mortgage rates.
"When you factor in the nationwide trend of rapidly increasing prices, it's going to be a more difficult market for homebuyers this year," added Berson.
"Household formations have offset much of the negative price impacts," Berson noted. "The labor market is strong, and wages are increasing. Affordability remains a concern, especially for entry-level homebuyers in today's low-inventory conditions, but most indicators point to healthy, sustainable local markets with only a few extreme exceptions."
Nationwide’s Health of Housing Markets report highlights the top 10 markets this spring:
Johnstown, Pa.; Carbondale-Marion, Ill.; Springfield, Ill.; Farmington, N.M.; New Bern, N.C.; Chambersburg-Waynesboro, Pa.; Pittsburgh, Pa.; Auburn-Opelika, Ala.; Harrisburg-Carlisle, Pa.; and, Erie, Pa.
While those in the bottom 10 are:
Victoria, Texas; Rapid City, S.D.; Sherman-Denison, Texas; Beaumont-Port Arthur, Texas; Anchorage, Alaska; Houston-Sugar Land, Texas; Pueblo, Colo.; Brunswick, Ga.; Rochester, Minn.; and, Coeur d'Alene, Idaho.
