Home sales tend to rise along with the temperature. According to Realtor.com, 50% of homes are sold in summer. But if you want to get the best deal—and avoiding a bidding war—your odds are best when the weather turns colder and the days grow short, says Lawrence Yun, chief economist for the National Association of Realtors.
Year after year, closings in January tend to show a dip in prices, suggesting that buyers who made offers in November and December got the best deals, he says. In the summer of 2014, for example, median home prices climbed past $220,000, only to drop below $200,000 in January of 2015. Median home prices nearly hit $240,000 the following summer, only to move down again in the late fall.
“Some of this is driven by the types of houses that sell in the winter months,” says Yun. Families with school-age kids often account for larger, pricier homes, and they prefer to buy in the summer when kids are out of school.
Knowing this, many sellers don’t list their homes later in the year, and many pull their listings in the late fall in hopes of starting fresh in the spring. Sellers who stick with it, theory goes, are the most motivated. (Note: A RealtyTrac analysis of home sales over the past 15 years pegged October as the best month to buy at a discount, 2.6% less than the fair market value at that time.)
To be sure, buyers who shop later in the year may be able to negotiate a better price, but there is a possible tradeoff—less selection.
That’s because inventory of homes for sale typically starts to decline in September, Yun says, with the biggest dip around the holidays. Historically, it drops 10% in December, with little improvement in January. “Inventory begins to measurably increase in the spring,” he says. “Over the last four years it looks like a 10% jump in inventory from March to April.”
Certainly, there are markets that defy these trends. Winter destinations, for example, often see a surge of activity in the late fall and winter, as snowbirds and tourists hit the open house circuit. Similarly, demand for smaller homes and condos tends to be relatively steady throughout the year, says Yun, because buyers and sellers typically aren’t beholden to school calendars.
It’s important to know your market’s quirks. In the end, however, the best time to buy a house really depends on what makes the most sense for your situation. No seasonal discount is worth rushing into a decision, paying a higher interest rate, or buying the wrong house.
by MONEY Magazine
Blog submitted by: Tina Young (Investor, Realtor) of The Real Estate MarketPlace – Servicing the Greater Fort Hood area which includes: Killeen, Harker Heights, Temple, Belton, Copperas Cove and Nolanville. Feel free to call Tina at (254) 338-0545 if you have any questions regarding Central Texas Real Estate.
For Real Estate Listings in Central Texas visit my website at: www.Tina.killeenlistings.com or if you’re on the go text 'Tina' to 254-227-5799
Author:Chip Franks Phone: 254-291-1337 Dated: August 23rd 2016 Views: 320 About Chip: The Supreme Commander of The Real Estate MarketPlace and A Good Guy, In General!
Ron "Chip" Frank...
For our Purchasing Clients: we make sure you have access to EVERY home (not just those we list, or the three or four that we think you might like); and we will never pressure you.
For our Selling Clients: we market the heck out of your home; we give you updates on what we've done to sell your property every week along with feedback and activity on the home; we can also lease your property should it fail to sell--seamlessly. Finally, if you're ever unhappy with us, or your circumstances change, you can cancel our agreement.
Lastly, if you're interested in our Property Management services, visit www.KilleenPropertyManagement.com.
The holiday season is here! No matter if you celebrate Christmas
"You came recommended from a reliable source and gave us the impression from the beginning that you cared about our needs and limitations. You made available every property to meet our needs; even the internet website postings. You were accessible to show the properties when we desired to see them. You were patient for over 6 months while we waited for the right property to meet our needs. Chip made it a personal issue to himself and his team to find the best house for us and to care about our needs and limitations. We felt his struggles with what we struggled with and felt the joy in him and the team when we felt joy. We connected! Come on, what can we say? Y'all are an awesome team! Just keep treating every Client the way you treated us; with honesty, respect and integrity and you should not only have a loyal clientele but the knowledge of having truly helped those you work with. Our experience with TREMP has been both a pleasure and a blessing. Feeling that we were not going to be easy Clients to work with because of our limitations, we assumed that we would have been treated with an uncaring attitude. However, from the moment we walked through the door to the time we signed the contract on our house we felt like family. They made us feel like we were part of a team reaching for a common goal to find our family a home and a future in that home. We walked away saying, "Wow! We will be friends forever." Thank you TREMP for a wonderful home experience."