Why It Makes Sense To Move Before Spring
The spring season is typically the busiest in the housing market. Many buyers wait until then to act, believing it is the best time to find a home. However, when you consider the competition you may face with other buyers at that time of year, this isn't always the case. If you're ready to buy a home, here's why you should act quickly before the spring market heats up.
The market should see a surge of buyers in the spring.
In most years, the housing market exhibits predictable seasonal patterns of activity. Winter is typically a quiet time of year, whereas spring brings a surge of buyers who begin their search. Experts predict that this year will be no different.
Buyer demand is currently low as a result of a combination of normal seasonal trends and a reaction to last year's rise in mortgage rates. However, rates have begun to fall since last November, and more and more potential buyers are planning to enter the market. That means now is a good time to buy if you're in a good position to do so before more buyers appear. Affordability is improving, but demand remains low — for the time being. According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR),
“. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.”
If you're ready to buy a home, now is the best time to do so before the market becomes more competitive and more buyers enter the market.
Sellers Today Are Motivated
Low buyer demand often means sellers are more motivated to work with you, which can help you buy a home on your terms. In fact, because there are fewer buyers in the market this winter, sellers have been more willing to negotiate. According to a recent Forbes article:
“. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.”
However, keep in mind that the advantages buyers have this winter will not last forever. If you wait until spring to make a move, you may face more competition, and increased buyer demand means sellers will be less motivated to negotiate with you. Work with a reputable real estate professional to learn what to expect in your local market right now.
If you're in the market to buy a home, it might make sense to do so before spring. The best way to learn about the current market and what it means for you is to work with your team of expert real estate advisors. Contact a professional today to determine the best strategy for achieving your home-buying objectives.
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