What Realtors Can Expect from the Spring Home Buying Season

Remember in 2020 when we heard the words “new normal” on a loop? Well, it’s 2023 now and we’re saying it again…except in a different way. This spring home buying season will usher in the new normal of real estate.

So, what does this new normal look like for Realtors? We’re glad you asked!

First off, inventory will remain tight. With existing home sales seeing a big jump in February 2023, it’s likely that inventory will shrink even more, and bidding wars will make a big comeback.

Bidding wars, of course, mean competition, especially in trendy areas of the country and in areas that have reasonably priced real estate available. This means coming up with creative ways to make sure your buyers will get their offer accepted.

Here are a couple ways we can help you with that:

• Churchill Certified Home Buyer: This positions your client much like a cash buyer. Most of their underwriting will be done up front, which makes their offer more secure to a seller.
  
  
• $5,000 Seller Guarantee: If your buyer’s offer falls through due to financing, the seller can keep the escrow money and receive an additional $5,000 through our Home Buyer Edge Program.

If you have buyers waiting for a change in home prices, they’ll keep waiting. Sellers will continue to put homes on the market at higher prices, and those prices will continue to inch up. This doesn’t mean sellers won’t need to be flexible. Depending on the area your seller is in, they may need to cut prices to get their home purchased more quickly. The majority of sellers, however, will see multiple offers if the home is being marketed well!

Another area to keep an eye on is mortgage rates.

As we saw at the end of 2022, the jump in rates caused a decline in sales. With a high of almost 7%, many buyers backed off, feeling uncertain of their financial future.

Buyers who are on the fence waiting for rates to drop are likely to miss out on building equity rather than saving on a potential mortgage rate.

One way we can help your buyers cope with fluctuating rates is with Rate Secured program at Churchill Mortgage. This allows your client to cap their interest rate for up to 90 days while they search for their new home. If rates go down, they can receive the lower rate. If rates go up, their rate will remain the same.

As a Realtor, it’s also beneficial to let buyers know the option of refinancing at a later date is on the table. Buying now, even at a less than ideal interest rate, will build equity toward long-term wealth. Then, at the appropriate time, your buyer can refinance to a lower rate, saving them money on interest. 

By now you’re probably wondering…what exactly is this “new normal” that the spring home buying season will bring? And the answer is: It’s more of the same, but a bit more stable.

You’ve gotten used to low inventory and fluctuating interest rates, and those issues aren’t magically disappearing. However, we are seeing an increase in purchases from last winter, which shows signs of stability. This doesn’t mean a balanced market, as the odds are still in a seller’s favor, but it is a fairly stable market, as of now.

Many buyers are purchasing their home for big reasons like relocation or a growing family. This is very different than 2020 when people were buying due to incredibly low rates. To help grow your business, focus on those big moments in a buyer’s life and show them all the ways owning real estate will help to provide a legacy of lasting wealth for their loved ones.

Check out our Agent Resources website for articles and playbooks that give you tips and tricks for making the most out of your career and how to provide even more value to your clients. If you’ve got any questions or just want to partner with a company that’s committed to doing what’s right for your clients, connect with us.

Let’s make the most of this home buying season, together!