Spring Selling Season Approaches Fast: Housing Market Predictions
Spring is normally a big selling season for the residential real estate market. In the wake of a sub-average year, many wait to see how the second quarter of 2007 will unfold.
After a difficult period in 2006, it has become commonplace for home builders and sellers to offer incentives in order to improve home sales and trim down the existing housing supply. According to reports by the National Association of Home Builders, around 77% of home builders were offering at least some type of incentive to home buyers in 2006 – compared to only 58% the previous year.
As of January, 60% of new-construction companies (up 5% from three months earlier) were presenting home-searchers with motivating upgrades such as granite kitchen countertops and 52% were volunteering to cover closing costs on the buyer’s previous home.
Now, April is around the corner and a typically busy time for the real estate industry approaches. As the housing market picks up, will incentives continue to be a prominent selling point? Now, home buyers expect to be offered enticements like free landscaping or high-end appliances but will a seasonal upturn influence the importance of incentives? Only time will tell, but these are questions industry analysts will be carefully following over the next few months.