Spring is the litmus test for the overall housing demand. Current home sales in February were up 9% from last year, and the Pending Home Sale Index was up as well. And according to a late February NAR survey of 4,300 agents, Realtors’ confidence in the single-family home market is also looking strong. Economist Paul Dales of Capital Economics says this spring season should be “the best we have seen in the past four or five years.”
Of course not every market will move in unison, and spring sales will be a great indication of which ones are headed in which direction. Veros Real Estate Solutions forecasts that home prices overall will drop less than 1%, but 40% of 321 metropolitan areas will see prices rise.
Phoenix is at the top of that list, and will see a 5% price gain this year. Denver is also seeing rising prices as their supply of homes drops as well. Some non-distressed homeowners are still reluctant to put their home on the market, but not all of them. In Central Pennsylvania residents saw a 30% increase in new listings early this year, and the trend has continued into spring. Overall spring is shaping up to be a very positive season for the housing market.