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How do seasonal real estate changes affect the market?
Real estate trends can vary based on season. It’s important to be aware of these changes if you’re thinking about getting involved in the market. Seasonal real estate changes are a normal part of this industry, and they can impact prices, supply and demand, and even the availability of mortgage professionals. Whether you plan to buy in the summer or dead of winter, there are certain things to keep in mind. Here’s what you need to know about how the market changes with the seasons!
Supply and demand
In general, the spring and summer markets are busier than the late fall and winter. People are out and about more during the warmer months and have more patience for touring homes, as opposed to braving blizzard conditions to view a house in the winter. With that in mind, buyers come out of hibernation during these months and give sellers lots of attention and interest. This means demand for real estate is high in the summer, and supply is quickly bought up. Buyers face more competition during these seasons, and sellers will tend to enjoy a wider range of offers.
In the winter, fewer buyers means less competition. It also means a bit less power for sellers who don’t necessarily have their pick of a dozen high offers. Since fewer people sell in the winter, this also means buyers won’t have as many options for house hunting. However, if they find a home they like, they are less likely to face intense competition when they put in an offer.
Busier real estate months result in higher prices for buyers. This goes in hand with supply and demand, as more demand creates more value in the market. If you go house hunting in the spring or summer, you can expect to pay more than you might if you were to buy a home in the winter months. This is simply because more interest generates more power for sellers, who can benefit from the number of buyers looking at their home. Right now, and for the past couple of years, prices have been steadily rising despite the season, as low interest rates have fueled demand. As we see rates continue to rise, we may fall back into the regular pattern of busier summer months and slower winter months.
Touring a house in January will be a different experience than viewing a home in June. Seasonal real estate impacts how a home appears, especially on the outside. If you’re viewing a home during the busier real estate seasons, you will likely be seeing the home at its best. In the spring and summer, trees are filled in and lawns are healthy and green, and the sun shining makes homes look pristine. This adds up to maximum curb appeal, making it easy to fall in love with a home from the outside, but it’s important to look past appearances and focus on the condition of the home itself. It’s easy to assume a home is perfect when aesthetics are kept up in the summer, so take extra care to look at the house thoroughly.
On the flip side, viewing a home in winter likely means seeing it at its most bleak. Grey weather, slushy and snowy lawns, and stained windows don’t make the best first impression, so you again need to look past appearances and see the home’s value. Imagine how the home would look in optimal conditions. If you can fall in love with a home in the winter, it likely is a good bet for you.
Tips for buying in a busy market
Thinking about buying in the spring or summer? You’re taking the plunge into the busiest months of the year for real estate. The good news here is that there will likely be more homes on the market. The bad news is that more buyers means more competition and higher prices. The biggest advice we can offer is to get your pre-approval in place now, so you can make an offer that is realistic for you and can get your financing ready more quickly in this fast-paced market. We also recommend that you have the right agent on your team. Buyers representing themselves in a busy market will have little luck appealing to sellers who want a quick and easy selling process, and agents can help you submit an offer that attracts sellers. Finally, be as specific as you can in your house hunt. The more you can narrow down your budget and needs, the quicker you can find a home that suits you.
Buying in a slower market
Looking to buy a home in the winter? Seasonal real estate changes mean you will be purchasing in a much slower market. Our main tip here is to evaluate your housing needs before you hit the market. Since there will be fewer listings, you may not find a home that fits all of your needs and wants. The thing you need to ask yourself is whether you can still be happy in a home like this, or if it won’t work for you at all. If you can’t enjoy a home that doesn’t have at least three bedrooms, for example, it’s not worth going through the purchasing process. However, if you can make your peace with a house that has a smaller lawn, and you don’t think this will be your forever home, maybe you would consider making an offer.
Seasonal real estate changes can certainly impact your experience in the market. No matter what time of year you’re looking to buy, you should consult a mortgage professional first. Brokers can give you advice on buying in certain markets, and help you make important decisions regarding your mortgage. Having a broker on your side will be a big advantage for you in any market.
If you have any questions about your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.