and why you shouldn’t wait until it’s here to make your move.
Since 1999, existing-home sales have expanded by an average of 33% from February to March and continued to grow a rate of 10% month-over-month until June, per the National Association of Realtors. Sellers want to sell, because buyers want to buy. There’s an influx inventory, but it’s matched by increased competition in the market.
Here are a few reasons these months have become some of the most popular to make a move.
Changing weather signals it’s time for a change.
Funnily enough, the season has an impact. People emerge from the more isolated winter months and the hustle and bustle of the holidays ready for change. Warmer weather makes outdoor repairs, maintenance and improvements easier, giving fresh curb appeal to upcoming listings.
The timing aligns with the end of the school year.
Many buyers and sellers prefer to move in the early summer months, after school has ended. An early summer move allows everyone to get established in their new neighborhood well before the next school year starts. Plus, residents see an uptick in neighborhood activities during the summer months, providing ample opportunities for buyers to meet their new neighbors.
Tax Refunds can help with big purchases.
Spring is a busy time in the real estate market because many people use their tax refunds to make a down payment on a new home. With extra funds available, they may be able to afford more home than they previously thought.
The anticipation of falling interest rates is real this year.
Falling mortgage interest rates can lead to increased activity in the spring real estate market as consumer confidence begins to return.
Lower interest rates reduce the cost of borrowing, making homes more affordable. Increased affordability can stimulate demand for homes, resulting in more buyers entering the market. Lower interest rates can also lead to an increase in refinancing, allowing existing homeowners to free up money for new home purchases.
Knowing the market is about to change, leaves consumers with some unanswered questions.
Is it too late to get a jump on the market?
We’re already seeing buyers ability to negotiate fade and multiple-offer scenarios return. And while it is true that the spring season is usually a busy time for real estate, there are still steps you can take to set yourself apart and make the most of the season. Working with a real estate agent experienced in the market, being prepared to make a quick decision and understanding the give-and-take required will increase your chances of presenting a successful offer.
Should I wait for the spring market to officially hit? Won’t there be more inventory?
You shouldn't wait for an influx of inventory to hit the market before shopping for homes. Timing the market is an ineffective strategy for both buyers and sellers because the real estate market is affected by many variables that are difficult to predict and can change rapidly.
Trying to time the market can result in missed opportunities or financial losses. It’s often better to focus on finding the right home for your needs and budget. Solely relying on finding a deal can distract from other important factors, such as location, home quality, and personal circumstances.
Additionally, waiting for increased inventory may not necessarily result in lower prices. High demand markets may still be competitive, driving prices up and resulting in the best homes going under contract quickly.
Looking for some guidance on how to navigate the real estate market at any time of the year? Give me a call; we'll focus on your goals and what's important in your next home.