The Summer Housing Market Forecast from a Metro Mortgage Expert
Published on June 5, 2024
•2 min read
Summer is traditionally a busy housing season for buyers. With an increase in interest, it can make competition particularly difficult.
Deb Frank, Vice President Mortgage Relationship Manager at Metro, expects a competitive but morestabilized housing market this summer. With last summer’s market defined by extreme price hikes and significant inventory shortages, a cooling-off of some demand this season is certainly welcomed.
So, while you may not be able to beat the heat, you may be able to beat out other buyers with the best offer for the home you want.
In our conversation with Deb, we asked what potential homebuyers should prepare for:
1. What are your general expectations for the housing market this summer? What are you preparing to see?
Frank: “This summer, the housing market is expected to remain competitive but with signs of stabilization. With interest rates expected to stay relatively steady, buyers and sellers will be cautiously optimistic. We're likely to see moderate price increases, especially in high-demand areas, but not the steep spikes experienced in previous years. Inventory levels may improve slightly as more homeowners feel confident about listing their properties, contributing to a more balanced market.”
2. Will there be an influx of interest this summer compared to the beginning of this year? If so, why?
Frank: “Yes, there will likely be an influx of interest this summer compared to the beginning of the year. Summer traditionally attracts more buyers due to favorable weather and the desire to move before the new school year starts. Additionally, as people adjust to new hybrid, remote or back-to-the-office models, there's renewed interest in relocating. Economic factors such as stable interest rates and slight improvements in housing inventory should also contribute to increased market activity.”
3. What can homebuyers do to make their offers more attractive?
Frank: “To make their offers more attractive, homebuyers can:
- Get Pre-Approved: Ensure they are pre-approved for a mortgage, demonstrating to sellers their seriousness and financial readiness.
- Offer a Competitive Price: Be prepared to offer a price that reflects the market value, or slightly above, especially in high-demand areas.
- Minimize Contingencies: Limit contingencies to make the offer more appealing to sellers who prefer a smoother, less complicated transaction.
- Increase Earnest Money Deposit: Offering a higher earnest money deposit can signal commitment and financial stability.
- Be Flexible with Closing Dates: Flexibility with the seller’s preferred closing timeline can be a significant advantage.
By preparing strategically, buyers can enhance their chances of securing their desired property in a competitive market.”
Need more information about the homebuying process? We have plenty of homebuying resources to guide you on this journey:
- Talk to a mortgage expert to get the process started.
- Research different mortgage options.
- Check out our Homebuyer’s Resource Center on MetroCU.org.
- Sign up for a Homebuying Seminar and attend virtually.
- Search related content on the Metro Blog for more insight on the homebuying process.
