March 5, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, Dr. Clare Losey and Emily Chenevert discuss the real estate market outlook for the upcoming spring season. Dr. Losey predicts a steady market similar to last year, with sales and home prices expected to fluctuate minimally, around a 5 percent difference either up or down. She emphasizes the role of slightly elevated mortgage rates, which are anticipated to stay in the mid to high 6 percent range, and the rate lock-in effect deterring homeowners from selling due to previously secured lower rates. Despite a 15-month decline in home prices, affordability remains a concern, compounded by a low inventory of affordable homes, which challenges first-time buyers.   Dr. Losey reflects on the current market's adjustment phase post-COVID, aiming for normalization of activity levels. Last spring's mortgage rates, slightly lower than this year's, led to expectations of a stable market, with sales and median prices showing minor variances. The conversation touches on the reintroduction of seasonal market patterns, affected by COVID, and anticipates a cautious stabilization depending on Federal Reserve actions. The ongoing adjustment aims for a new market equilibrium, addressing uncertainties, especially regarding mortgage rates.   They discuss practical aspects for agents and sellers in navigating the spring market with better pricing strategies, considering the mortgage rate landscape. Dr. Losey shares insights on the February market stats, noting stable closed sales, an increase in inventory, and a rise in leasing as an alternative to homeownership due to inventory shortages. The episode concludes with Dr. Losey inviting members to a market data lab for deeper discussions, highlighting the importance of adapting strategies based on evolving market dynamics and geographic specifics.   Links Mentioned: February 2024 Central Texas Market Report - https://www.abor.com/marketstatistics Market Data Lab with Dr. Clare Losey - March 19 - https://www.abor.com/class/market-data-lab-2   Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732 YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC   Download the Audio Transcript + Episode Summary: https://www.abor.com/content/uploads/2024/03/DIH-3-5-2024.pdf Connect with us on socials: https://www.abor.com/socials Connect with Dr. Clare Losey on LinkedIn: https://www.linkedin.com/in/clare-losey Have feedback? Email us at [email protected].