A strong spring ahead for real estate?

February saw California home sales increase by 11.3 percent over January – the lowest level in sales in over 10 years – and many analysts are looking for the trend to continue this spring. According to the California Association of Realtors, February’s numbers were the highest growth in sales since January 2011.

Analysts say lower interest rates stabilizing home prices were the prime factors in the sales jump. Overall, the nine Bay Area counties saw a slight decrease in home prices.

Also, the Bay Area saw a 41.9 increase in active listings and realtors are expecting continued buyer interest into the spring.

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Spring 2019 Real Estate Trends

Super high prices and bidding wars are over. Here’s what to look for in the coming months:

  • It’s no longer strictly a sellers market. Many buyers have been in the market for a long time and have continued to save. They are ready to buy but won’t get cut up in a purchasing frenzy.
  • Many looking to other neighborhoods. Reality has set in, particularly among millennials, and many will be willing to move farther out from city centers. Also, many will be willing to buy more basic homes to break into the market.
  • Affordability continues to be an issue for many. Some things haven’t changed and while prices aren’t increasing at the rate of years past, rising interest rates are now playing a more significant role.
  • 2019 will be better than 2020. Many experts say that spring 2019 will be a good time to buy if possible.
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