Everybody says spring is “the” home buying season. But summer’s a great time to buy — maybe even a better time to buy, and here’s why:
Spring is the typical busy season for real estate. That means there’s going to be tons of hopeful house hunters hitting the streets, looking for their dream home, investment property or vacation house. Summer on the other hand offers buyers the best of both worlds–there are still plenty of homes listed on the market, but fewer people are searching as back-to-school season approaches.
Potential for Better Negotiation
Home buyers who’ve had their listing up since early spring may be more willing to accept a lower offer once July or August rolls around. Sellers who are eager to sell because of a change in lifestyle (starting a new job, relocating out of state, having a baby, etc.) may be especially open to negotiation. However, buyers should take caution when it comes to lowballing.
During August and September, most home listings will have had at least one price reduction, according to data from Zillow.
“In almost every large market analyzed, the highest share of listings with at least one price reduction were in August and September of last year,” writes Jamie Anderson, contributor for Zillow, in a May 2017 article entitled, “When’s the Best Time of Year for Home Buyers?”
Since summer typically sees seller’s slashing prices, buyers who lowball may have their plans backfire. If a seller has already reduced their price, they may take offense to a buyer coming in with yet another lower figure. This is where working with a skilled buyer’s agent can be invaluable. Your agent can help you look up the listing’s price history, compare it with other homes in the area, and help you come up with a good offer strategy.
Interest Rates Remaining Low
Despite a few recent upticks in the mortgage rate market, interest rates on home loans remain relatively low, especially by historical standards. Last month, a Yahoo News story reported that mortgage rates tumbled for six straight weeks before settling at a low not seen in nearly two years. This gives current home buyers some financial flexibility when it comes to budgeting for their new home purchase. Lower mortgage rates mean lower monthly payments, which could also help add to their buying power.
More Inventory Hitting the Market
Housing inventory is now outpacing sales activity in some markets, according to recent data from Realtor.com. This means the market is shifting in favor of buyers. With more supply than demand, buyers could be in a much more favorable position than sellers when it comes to negotiating price. Plus, it’s nice to simply have more options to choose from when shopping for a home.
It should be noted however, different locations and different markets will have equally different trends when it comes to supply and demand. There are some real estate markets where the busy season lasts well into fall. Likewise, highly popular neighborhoods may remain “hot” no matter what time of year it is. Talk to your real estate agent for advice on timing your home search by location.
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