More than half the real-estate professionals surveyed about the state of the spring home-sales market across the Mid-Atlantic believe that buyer activity will be high or very high. But a majority of the same group also predicted seller activity will be low to very low.
The survey of about 2,000 professionals was conducted by Bright MLS among those who were involved in at least one real-estate transaction – either on the buying or selling side – during March. The group is “therefore very attuned to what is going on in the market,” survey administrators said.
Those who were surveyed are engaged in the practice of real estate across the District of Columbia and six states: Delaware, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia. Soundings were taken between April 6-11.
The perception espoused in the survey – buyers will be on the hunt but sellers will be sitting out the spring market – seems in line with recent conditions. It already has, and has the potential to continue, to push prices higher as prospective buyers, particularly first-timers, are attempting to elbow their way into home-ownership in a tight market.
“Sellers still have more leverage, since buyers are challenged to find many options,” said Cassandra Welch of Long & Foster Real Estate, a member of the board of directors of the Northern Virginia Association of Realtors.
Inventory of homes on the market is rising, but that largely has been due in recent months to homes lingering on the market longer.
While the Bright MLS survey suggested that a higher-interest-rate environment has not played as much of a role in forcing some prospective buyers away from purchases as previously had been suggested, there is no question it has had an impact.
“With steep prices in Northern Virginia, higher mortgage rates have made it harder for home-buyers, especially first-time bone-buyers, to afford a monthly payment,” said Ryan McLaughlin, CEO of the Northern Virginia Association of Realtors.
Of late, interest rates have bobbled up and down.
“While there are week-to-week fluctuations, we are optimistic that rates will continue to drop compared to last year, helping with affordability,” McLaughlin said.
