There is an unofficial “selling season” in real estate, and it’s Easter through August. This is when the majority of sellers put their homes on the market. If you're considering buying a home, the next question for you is when?
Spring time can be one of the best times to begin your home search, here's why:
Easier House Hunting
I am a big believer that buying and selling homes is all based on the weather. When it’s cold, dreary and gray, people naturally want to hunker down and hibernate. They don’t want to think about finding another home. Then suddenly Mother Nature goes into full swing: flowers are blooming, grass is greener, and sunshine is peaking through the windows to showcase each home in its best light.
More Choices = More Sellers Competing for Aggressive Pricing
The trend for sellers that don’t have to sell on a pending deadline is they tend to pull their homes off the market in the fall before the holidays if it hasn’t sold and try again in the early spring. Well, couple this with new people wanting to sell their homes that haven’t been on the market yet; you will get a lot of homes on the market (or inventory).
So when there is more inventory on the market, sometimes this drives down prices ⬇️. It’s basic “supply and demand”, if there are 100 homes on the market and only 50 buyers, then the sellers who have to sell need to make their home attractive to buyers. This usual means going as low on the price as they can to make buyers want them.
- If you flip the script 🔄 on this one and want to buy in the fall, there may not be as many homes for sale, and the sellers may have the advantage.
Tax Refund Money
If you are some of the lucky Americans that get a tax refund, what better way to use this money than to invest it in a home. Don’t get hung up on the amount, there are several loan options available that may be exactly what you need and require a downpayment of exactly what you have.
Interest Rates are Expected to Rise
The Federal Reserve is the government body who oversees interest rates. They slashed them to 0.00% in 2008 in the beginning of the Great Recession, however it took them until 2015 to raise them a little, then they did a little more in 2016, and twice in 2017. As the economy gets better and better the interest rates will rise. So with this pending trend, you can expect interest rates to continue increasing in 2018.
So what does this mean to you? You can afford less house for the same amount of monthly payment. If you want to "geek out", here is an article on www.MortgageReports.com that explains the cost of rising interest rates in detail.
Rental Rates Increasing
If you are a renter, I can understand that you are tired of constantly being told by cheesy realtors that "buying is better than renting". I would be too. I am not trying to tell you that, because it may not be for your situation. Often times we, at The ART of Real Estate, find ourselves telling potential buyers "you may be better off renting for a while". So if you hear nothing else, hear this: interest rates are at historic lows, home prices are still low, and rental rates are high. So if you are looking for an unbiased assessment of whether its right for you to buy or not, we will do that.
If you've decided that you're ready to move and think Spring time is for you, here's what's next:
1) Let's find a time that works for you ➡️ Schedule Now
2) Meet up for coffee, beer, or tea - whatever fits your style.
3) We'll provide you with an in-depth, strategic buyer book on how the process works.
4) We can recommend a lender for you to talk with, who isn't aggressive or pushy, to give you a professional opinion on your current situation.
5) If everything points to buying a home, we will be happy to guide you through that process and strategize how to meet your housing goals.