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    Buyer Demand Surging as Spring Market Begins

    Buyer Demand Surging as Spring Market Begins | MyKCM

    Last fall, some predicted that the 2019 residential real estate market would be a disaster. There was even belief we might experience a housing crash like the one that occurred during the last decade.

    However, according to two separate reports*, buyer demand dramatically increased over the last three months, leading into this spring buyers’ market (the March data is not yet available).

    Both the ShowingTime Showing Index and the National Association of REALTORS Buyer Traffic Index show that buyer demand has increased in each of the last three months.

    Buyer Demand Surging as Spring Market Begins | MyKCM

    Why the increase in demand? Increased buying power.

    According to the National Association of Realtors’ Economists’ Outlook Blog, purchasing a home has become more affordable, which has led to increased demand.

    “Due to the combination of falling home prices and mortgage rates, the income needed to make an affordable mortgage payment (mortgage no more than 25% of income) on a median-priced home with 10% down payment and 30-year fixed rate mortgage decreased from $60,425 in June 2018 to $53,783 as of February 2019, and the difference of $6,642 represents a gain in buying power because one can afford a home purchase at a lower level of income.”

    Bottom Line

    It appears the spring buyers’ market is going to be much stronger than many had projected. Whether you are selling or buying, this is important news.

     

    *The methodology behind the indices:

    The ShowingTime Showing Index

    “The ShowingTime Showing Index® tracks the average number of buyer showings on active residential properties on a monthly basis, a highly reliable leading indicator of current and future demand trends.”

    The National Association of REALTORS® Buyer Traffic Index

    “In a monthly survey of REALTORS®, NAR asks respondents ‘Compared to the same month last year, how would you rate the past month’s traffic in neighborhood(s) or area(s) where you make most of your sales?’ NAR compiles the responses into an index, where an index above 50 indicates that more respondents reported “stronger” traffic than “weaker” traffic.”

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    Alan Harling

    I relocated to Colorado from Illinois where I built a successful career in real estate representing both buyers and sellers. My success was based on building a relationship of trust and understanding with my clients, utilizing data to support actions, and implementing problem solving skills throughout the contract-to-closing process – all of which you can expect me to continue as I launch my business in Colorado. Experience as a certified Project Management Professional laid the foundation for my organization and management skills which carry over into my real estate business. Personal experience as a collegiate athlete and coach contribute to my competitive spirit. In my free time, I enjoy exploring hiking trails, spending time with my husband and three sons, and spoiling our dog Lilly.

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