Even though winter is in full swing, signs suggest the real estate market may be warming up. Home equity has reached record levels, inventory is gradually recovering, and price reductions are becoming more common. While interest rates remain high, they are allowing inventory to build as some sellers make adjustments to attract buyers.
More Homeowners Could Be Ready to Sell
Home equity across the U.S. reached nearly $35 trillion in the fourth quarter of last year, more than double the peak from 2005. With so much equity on the table, many homeowners may be considering selling, especially as the spring market approaches.
Now is a great time for sellers to prepare their homes for listing. Scheduling landscaping services as soon as the weather allows, tackling indoor updates, and planning exterior improvements can help maximize home value.
Additionally, life events continue to be a strong motivator for homeowners to sell, regardless of interest rates. A recent study found that 78% of sellers were influenced by major life changes, such as job relocations or shifts in family size. The study also revealed that fewer sellers are immediately buying another home after selling, suggesting that mortgage rates may not be as much of a hurdle as before.
Slower Home Price Growth and More Price Reductions
For buyers, the shift in market dynamics could present new opportunities. More sellers are making price adjustments, with nearly 23% of homes nationwide seeing a price cut in January—the highest for that month since 2018.
Markets with the highest share of listings that had a price reduction:
🏡 Phoenix, AZ (33.5%)
🏡 Tampa, FL (32.4%)
🏡 Jacksonville, FL (30.8%)
🏡 Orlando, FL (29.1%)
🏡 Dallas, TX (28.7%)
With negotiations shifting in favor of buyers, those looking to purchase this year still have time to improve their credit, explore mortgage options, and get pre-approved. As the spring market heats up, finding the right financing and acting strategically could give buyers an edge.
Whether you're thinking about selling or buying, staying informed on market trends is key. Now is a great time to evaluate your options and make the most of current opportunities.
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Let's Connect | Stephen Sweere The Lakes Area Listing Agent
