Will there be a Spring Boom?

Spring is the busiest season for real estate. "Indeed, April through July outpace the balance of the year in sales, historic data at the National Association of Realtors indicates. So there'll surely be more home inventory and variety then. But you better move fast, because that's just what other home hunters are doing (Bankrate)."

Some real estate agents are hoping a hopping spring will reverse the current price declines occurring in most bubble markets. The hope is that with the spring season a large amount of buyers will swoop in, raise demand, and bid up prices. Real Estate Blanche Evans writes "What about housing? There's a lot of positive news that suggests that housing may have had its "rest." Spring might catapult housing into another record year."

On February 8th, the Wall Street Journal reported that "With the key spring selling season about to get under way, the inventory of homes on the market is climbing sharply in a number of major cities. Nationwide, there were 2.8 million existing houses and condominiums on the market at year end, according to the National Association of Realtors. That is down slightly from November's 2.9 million listings, but up 26% from a year earlier. Adjusted for seasonal variations, inventories have climbed 38% since April, according to Goldman Sachs Chief U.S. Economist Jan Hatzius, the largest eight-month increase on record."

For some sellers and market analysts their hope is focused on a solid spring. The coming reality in spring will be more buyers but also more sellers. Inventory will continue to increase in most bubble markets. Prices will likely continue to fall during the spring months or at best remain flat in the bubble markets. This year's spring selling season will be very disappointing for sellers expecting the madness of last year's spring.