SANTA CLARA, Calif.–With Spring officially here, credit unions will find numerous members looking for assistance purchasing a new home as the home buying seasons gets underway at the same time the market seems hotter than ever.
A new survey from Realtor.com has found home inventory in February was moving 8% more quickly than in February 2017. The median age of properties listed through its database is just 83 days.
"We're only a few weeks into March and already seeing the market heat up," said Danielle Hale, Chief Economist at Realtor.com, in a released statement. "Holdover buyers hoping for greener pastures this spring are likely to find sparse options that require them to pay top-dollar or make other concessions."
Buyer demand remains robust even as home prices are up by 10% year-over-year–and mortgage rates have slowly ticked up as well.
For many the house hunt has been a long one. The Realtor.com survey found 40% of today’s buyers have been searching for more than seven months, 34% for four to six months, and 26% for three months or fewer.
Meanwhile, home inventory is down 8.5% from one year ago, and 35% of respondents said they anticipate “a lot of competition,” while 36% expect only “some.”
Realtor.com reported that when it asked about strategies heading into the spring buying season, 42% responded they were checking listing sites every day, while 40% of buyers said they plan to put more than 20% cash down. In addition, 33% said they are setting price alerts, 31% plan to put a larger earnest money deposit down, while 26% are willing to offer above asking price.
Homebuyers remain optimistic, regardless of market conditions, the survey found. Fifty-three percent said they expect to close on their future homes in less than six months, while 18% expect the process to take four seven to nine months, 15% expect the buying process to take 10 to 12 months, and 15% percent expect the process to take longer than a year.