Home Buyers Are Staying Active

Even though mortgage applications slowed at the start of the year, buyers aren’t backing down. In fact, home tours and buyer activity have increased compared to last month and even last year. While some people expected the market to cool off, the reality is that many buyers are still out there, looking for the right opportunity.

One big reason for this? Affordability is starting to improve. Home prices have dipped slightly, and there are more smaller, budget-friendly homes hitting the market. This is giving buyers—especially first-timers—a chance to jump in. On top of that, confidence in the housing market is growing. A recent report from Fannie Mae showed that more people feel positive about buying a home now than they did last year, which is keeping the market moving.

Even with some uncertainty in the economy, buyers are motivated. Wages are rising, which means more people can afford a home than before. Mortgage rates have been bouncing around, but many buyers are choosing to move forward now, rather than risk paying more if prices or rates go up. Plus, with more homes available, buyers finally have more options to choose from, which wasn’t the case during the housing frenzy of the last few years.

Looking ahead, the market is still a bit of a balancing act. Builders are picking up the pace, which should help with inventory, but inflation is still a concern. The Federal Reserve has been holding off on major rate cuts, meaning we probably won’t see huge shifts in affordability right away. For buyers, this means the best time to act is before the competition picks up again.

If you’ve been thinking about buying a home, now might be the right time to start looking. The market is changing, but opportunities are there. Being prepared and staying informed will help you make the best move when the time is right.