Confession, I’m a geek. Not a techie geek, but a season’s geek. I love spring. It’s the start of many things; baseball; warmer weather; and daylight savings time. Well, that last one is debatable. President Trump, can you please put us out of our misery and rid us once and for all of that awful tradition of changing our clocks back & forth? Spring is also the start of the prime selling season for real estate. If you’re in the market to buy or sell, spring is the time.
According to Tian Liu is the Chief Economist at Genworth Mortgage:
“Throughout the second quarter of the year, existing home sales increase with an average month-over-month growth rate of 10% each month until June. As a result, the four heaviest home-selling months―May, June, July and August―account for 40% of an average year’s total home-selling volume. Higher volume during the peak selling months is important for both homebuyers and sellers. For home buyers, it means a higher likelihood of finding the right property.”
Just like in baseball, the action seems to happen in the middle innings. Clearly, there is a pattern showing monthly sales volume of existing home sales. Looking to list your home when the most action is happening? That would mean putting your house on the market in March, April or May. More sales is good for sellers, so what if you are a buyer? This pattern of more sales in spring means more aggressive prices, and can lead to some bidding wars amongst buyers. Perhaps waiting for less competition might be less stressful for you. Being patient this time of year can help you get a better deal later in the year.
“Although there’s less inventory in the fall than in the spring, buyers can often get better deals on what is available. Fall is a last-ditch opportunity for sellers to close on their homes before the end of the year” writes Deborah Kearns.
So I’d suggest some first time buyers put their foot in the water this spring to see what kind of house you can buy for your money, what neighborhoods you like, and so on. But, waiting out the summer may put you in a less competitive situation by fall. Even more so, if you want the least competition, try buying late in the year with an early January closing. If you are willing, try “straddling” the holidays. This strategy worked for me a couple of times. Buyers would love to have their home under contract over Christmas, but want to stay until after the holidays. In today’s market, new buyers need every advantage they can get. In real estate like baseball, sometimes the best games (deals) aren’t until the very end of the season. For more tips on buying your first home visit www.radicalhousing.com