Aside from it just being peak season in Real Estate, a few other elements are at play right now:

1. Consumer Sentiment in Real Estate is higher than this time last year. According to Mortgage Giant Fannie Mae, the share of those saying now is a good time to buy is 24%. While that’s not a generally high number (about 1 in 4), it’s better than the all-time low of 14% in Spring 2024. Those saying it’s a good time to sell remains high at 62%. More Sellers in the market provides more options for Buyers, which also improves sentiment.
2. Fannie Mae’s Home Purchase Sentiment Index (HPSI) forecasts 30-year fixed-rate mortgage interest rates won’t drop below 6.5% this year or next and almost half of Americans surveyed expect home prices to continue to rise. So there is no real benefit to putting your move on hold.
3. According to Redfin, everyone who bought and financed a home in the past two years has a mortgage interest rate of at least 6%. This means almost a fifth of all homeowners now with mortgages have an interest rate of at least 6%. This is the highest share in nearly a decade, signaling the lock-in effect is starting to ease. As homeowners continue to grow equity, it’s easier to justify leveraging that equity to sell and buy, taking on a higher interest rate. 

What This Means Locally

Our last full month closed out is February, and we see in those numbers that so far, our Days on Market are slightly lower than the same time last year. Though we’re still looking at just shy of 2-months between the day a home hits the market and when it goes Under Contract. Our median price is $490,000, a 2% increase from February 2024. Active listings have increased while the number of homes Under Contract and Closed have both decreased. I’m expecting the recent surge in the market will change the direction of these numbers, even if just slightly:

As of the end of February (our last full month closed out), Days on Market are down year-to-year – though just slightly. This means it’s taking the average home about a month on the market to go Under Contract. Unless, of course, you have an incredibly updated and upgraded home to offer (see above).

Median Price is up by 2% year over year, sitting at $987,000. Our average price in Williamson County is $1,260,455.. which is a $118,000 increase from February 2024. It’s about $46,000 higher than January. See graph:

The evidence of more Buyers comes not only in the resurgence of the occasional multiple offer situations, but also seeing reports like from the Mortgage Bankers Association. MBA says applications are up 37% since January. This is a leading indicator that Buyers are getting their finances in order and intend to enter the market.

ShowingTime data also reports a rise in home showings since January. I believe we will continue seeing this increase along with mortgage applications. These trends typically go hand-in-hand.

I also monitor portals and their reports. Redfin has a Homebuyer Demand Index which shows a 3% increase since late January. If the first two points continue to increase, this one likely will too.

I understand no one wants to be in a multiple offer situation, unless you’re a Seller. Thankfully, there are plenty of homes to choose from on the market right now that you won’t have to fight for.

As a Seller, Realtor.com predicts April 13-19 will be the best time to list a home For Sale this year as that’s when we may see peak buying demand.

The more Sellers who come out, the more Buyers we typically see. More options are better for everyone, and it’s not too late to get your move started!

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