Home buyers are going to see more competition than they might expect — not because there are a huge number of buyers to compete with, but because there aren’t many homes on the market to go around.

Home buyers are motivated and are keen to hit the market this spring, even through a period of change unlike any we have ever seen. Mortgage rates are not only high, but volatile, which makes it hard for a buyer to know what they can afford.  While buyers are showing up, affordability challenges and limited options contribute to a frustrating experience. 

Sellers, or the lack of, are the bigger factor in this cooling market. New listings actually fell in April, a rarity for what is usually the busiest time of year for home shopping. High mortgage rates affect sellers, too, who have largely decided not to trade in their current mortgage for a new one with a much higher interest rate. 

Homes priced correctly have a good chance to sell quickly, just not at the light speed that was common last year. The median time on market for homes that sell is 10 days. Sellers need to price right from the start and focus on online curb appeal if they want to sell quickly. 

Looking ahead, mortgage rates will likely continue to have the biggest impact on market conditions. If mortgage rates fall, expect the market to heat up. If mortgage rates rise, or remain volatile, that will freeze buyer and seller activity. 

Further reading: 

• Zillow April Market Report: https://www.zillow.com/research/april-2023-market-report-32615/
• Zillow April Rental Market Report: https://www.zillow.com/research/april-2023-rent-report-32595/
• Zillow Home Buyers Guide: https://www.zillow.com/home-buying-guide/ 
• Zillow Home Sellers Guide: https://www.zillow.com/sellers-guide/