Real estate markets experience seasonality, which means there are certain ups and downs we can expect at specific times, year after year. Summer tends to be the peak for the home buying market, and winter tends to be slower. If you think about it, this makes a lot of sense. In summer, kids are in between school years, so moving won’t disrupt their learning as much as if they were in the middle of the semester. The weather also tends to be nicer. Wouldn’t you rather go house hunting in warm, sunny weather than in cold, snowy weather?
However, there are good, strategic reasons for buying in the winter months as well.
For More Choices, Shop In The Spring Or Summer
Since the market is so active during the warmer months, you’ll have plenty of homes to choose from.
So will the other home buyers who are also in the market for a new home during the peak season.
If you’re looking at properties with highly sought-after features, expect to go up against stiff competition for the house you want. If you’re in a hot market where bidding wars are the norm, be prepared to give your best offer upfront. Don’t expect any seller concessions to sweeten the deal on your end.
Not all neighborhoods will be so competitive that you must fight your way into your next home.
While there will be more shoppers during peak season than any other time of year, the amount of competition you’ll encounter will depend on what area of town you’re shopping in. High-end neighborhoods or homes in the heart of the downtown, for example, will likely have more competition than other areas.
For More Negotiating Power, Shop In The Winter Months
While fewer homes are on the market during the colder months, the homes available offer potential cost-saving opportunities for savvy home shoppers.
There are two reasons this time of year can be the ticket to getting into a home you love at the best possible price.
First, because there are fewer shoppers looking to buy a home, you’ll have less competition. Because sellers know that interested buyers are few and far between during this season, they may be more open to sweetening the deal for you. This could mean accepting lower than asking price or offering concessions or more generous contingency periods.
The other reason this is a great season for buyers is that sellers who list their homes in the winter are more likely to be highly motivated to sell.
Since there tend to be more benefits to selling in the summer, most people will avoid listing their home in the winter unless they have to. If you’re negotiating with someone who’s trying to sell quickly due to a job relocation, for example, you’ll have the upper hand.
Is Now A Good Time To Buy A House?
As we head into 2021, home buyers are probably wondering what the new year will look like for those entering the housing market.
A big piece of this puzzle involves what mortgage rates will do in 2021. Though this can be hard to predict, there are a few different clues we can use to forecast what’s likely to happen
For starters, the Federal Reserve has indicated that it expects interest rates to remain near zero through 2023. While Fed rate decisions don’t directly affect current mortgage rates, they can create economic trends that lead to mortgage rate trends.
Recently, mortgage rates have remained low. Experts think this will continue into 2021. However, keep an eye on the trade war and the state of the economy.
If trade negotiations go south, it could end up lowering interest rates. Unfortunately, this would be due to a weakened economy, which could affect other factors like your buying power or financial security.
It’s important to consider the economic factors that affect the costs of buying (and borrowing to buy) a home, along with your own financial situation.
When is a good time to buy a house? The right time to buy a house is when you know your finances can handle the responsibility of owning a home. It’s right when you feel personally ready to buy a new home and are comfortable with the current market conditions.
Next Steps
If you’re starting to consider whether buying a new home would be a good move for you, now is the time to start looking. Keep an eye on the housing market to get an idea of the trends in your area.
Once you make the decision to enter the home buying process, work with a real estate agent you trust. They will give you confidence and smooth out the process.
Additionally, getting preapproved for a mortgage can help you get an idea of how much home you can afford. When you’ve found your dream home, you can make an offer with the confidence of knowing what you can afford.
I hope this has been helpful. Thank you for reading.
I’m Mary Howard and this is There is No Place Like Home NC.
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