The prime home-buying season is here – but no one is selling. And those who are buying are seeing a sharp increase in prices – 17 percent in March.
Analysts say that would-be sellers are holding onto their home – with the sub 4-percent mortgage rates – because no one wants to buy at 7 percent.
So the lack of inventory has – once again – sent home prices soaring. According to the California Association of Realtors, at the end of March it would only take a month and a half to sell all the homes currently on the market, down sharply from two and half months in February.
It is expected that the Fed will raise rates once more in May but that will be it for 2023 which should keep mortgage rates reasonably steady for the rest of the year.