What’s Heating Up in Housing This April
The spring real estate market is waking up in a big way. After a winter slowdown due to rough weather, residential construction bounced back in February with a 1.3% increase from January. The Mortgage Bankers Association says this marks more than two months of year-over-year growth—something we haven’t seen in a while. On top of that, Realtor.com reports a 31.2% jump in new listings over last year, with total inventory up 32.3%.
There’s a shift happening, and it may be tilting slightly in favor of buyers. In February, just 20.5% of homes sold above asking price. Another 15.4% sold at asking, while a solid 64.2% went for below asking. That’s a noticeable change from the frenzy of previous years.
But it's not all smooth sailing. Wall Street got rattled last week after President Trump’s announcement of unexpected reciprocal tariffs. That surprise led to the biggest single-day stock sell-off since the early pandemic days. With whispers of “stagflation” making the rounds—where economic growth stalls while prices stay high—it’s understandable that nerves are on edge.
Despite that, the core parts of the economy are still holding firm. The services sector remains in expansion mode, jobless claims are staying well below recession levels, and March saw a much better-than-expected 228,000 new jobs.
As for mortgage rates, the average 30-year fixed rate ticked down a bit, helped by investors shifting their money from stocks into bonds. It’s a reminder that rates can be volatile, so if you're in the market, staying in close contact with your lender is key.
Looking ahead, everyone’s watching for the latest data on inflation and jobless claims. If the Consumer Price Index shows signs of price growth slowing, that could be a green light for continued stability. The Fed might even be leaning toward future rate cuts if trade war fears grow stronger.
In summary, I’d say this spring feels different—in a good way. More homes, more buyers, and maybe, just maybe, a bit more balance in the market.