Buyers could be enticed back to the housing market in time for the spring buying season.
That’s according to a new analysis from Zillow, which found that market conditions have rebounded in buyers’ favor over the course of the month.
Rates are sitting at their lowest point since December 2024, while annual home value growth has cooled to an 18-month low of 2.1%. Plus, inventory is improving across the country, with a total of 1.04 million homes up for sale last month, the most for this time of year since 2020.
With all this plus receding demand, buyers have more power to be picky and negotiate a great deal.
“Affordability is still a massive challenge for those who have been waiting to buy a home, but the lower rates we’ve seen so far in March are taking the edge off,” said Skylar Olsen, Zillow chief economist.
“Rate dips tend to energize buyers and sellers both; if they continue or hold, we should see more activity. Economic uncertainty is a counterbalance, one that will be felt in some areas of the country more than others. People tend to shelter in place when the future of their job or industry is uncertain.”
But it’s not a total buyer’s market yet. Sellers can still expect premiums on their sales through at least July, Zillow says, making it a great moment for both parties.
Demand moving forward will be impacted by the Central Bank’s rate decisions this month, however. The FOMC meets this week to decide on its next move.
“The expectation is that the Federal Reserve will likely hold the line on rates in March and May, with markets anticipating a likely rate cut in June,” Andrew Rhodes, Senior Director and Head of Trading at MCT, noted.
Miami, New Orleans, Jacksonville, Tampa, and Memphis are the least competitive markets in the U.S. The best cities for sellers are Buffalo, San Jose, San Francisco, Hartford, and Boston.
source: the mortgage note
