Spring Home Sales: Abnormal Trend Anticipated

It's spring. Temperatures are heading upwards, flowers are starting to bloom, and millions across the country are gearing up for the spring real estate market.

Typically, spring is a busy time for real estate. Many people prefer to move in the spring instead of winter, so many sellers will put their homes on the market this time of year.

"This past week I have been a part of four multiple offer situations," said local real estate agent Lisa Sevajian of Remax. "There are serious buyers ready to move when they recognize value and ready to willing to wait when a price is even slightly off, as in 2-to-4 percent off."

But many experts, Sevajian included, expect an abnormal spring sales trend.

Supply and Demand

People love to move in the spring. There's no snow or freezing weather to contend with, the relaxing summer season hasn't arrived yet, and rebirth of grass and flowers goes along with moving to a new home. So usually, when spring arrives the demand for housing is greater for the supply of properties hitting tghe market.

But this year, like the recent years since the real estate bubble collapse, that is not the case. People still love to move in the spring, but foreclosures are keeping supply up, according to real estate market site KeepingCurrentMatters.com.

"The reason this spring will be different is that the supply of homes coming to the market will be dramatically impacted by foreclosure properties being released by the banks," the site reads. "Many believe this increase in inventory will far outweigh buyer demand. In situations where supply is greater than demand, prices decrease."

And what that creates -- the abnormality -- is a springtime buyer's market.

Waiting Game

Sevajian has seen this trend already.

"Many home owners are left asking why the buyers won't just make an offer they are comfortable with," she said. "The answer is simple. Serious buyers have power and they understand if the price isn't right today they can wait knowing there is most likely a reduction coming along with the new inventory."

And this past week, she added, many high-quality, low-priced homes have hit the real estate market in the area, making selling homes already on the market even more difficult.

But will people contain their spring fever and wait longer to buy, possibly into late spring or summer?

"[Sunday] will be a big indicator for us as to whether or not we are in a recovery or still on the decline," Sevajian said. "Open House traffic and Monday morning offer negotiations will be the deciding factor. I think that our market is evolving as most are and we are just now determining what the new normal is."