Buying or selling a home at the ‘ right time ’ is tougher than it sounds. People usually take these actions as a result of life event or financial issues. The economy and real estate forecasts are typically secondary considerations. Yet both sellers and buyers often pose the question, “When is the right time or best time to buy or sell?” If you have the luxury of deciding on when you enter the real estate market, here are a few items to consider when timing a home purchase or sale.
Predicting the ‘ Right Time ‘ to purchase or Sell a Home
Every marketplace is differentThere’s no longer one national housing market or forecast like there was 20 years ago. And just because the 24×7 national news outlets tell stories of hot real estate markets with multiple offers and quickly rising prices doesn’t mean that’s happening in your neighborhood.
In fact, real estate activity can vary widely within the same county. One town can easily see record-breaking activity, while another 10 miles away carries a glut of inventory.
If you want to purchase and sell, dig deeper, shop around and get as much local information as you possibly can. Speak with a good local agent early and often to stay informed about shifts in the marketplace.
Mortgage rates fluctuate
Most people have to have a mortgage to buy a home, and long-term mortgage rates can be a major factor. For many years, we’ve been living with historically low rates on mortgages. But while we could possibly be living in a time of three- or four-percent rates today, do not forget that in the 1980s rates were 12 percent or higher.
It’s not uncommon for buyers to get off the sidelines and into the housing market after they hear news of the Federal Reserve raising interest rates. It’s very likely anytime rates do begin to creep back up again (and they eventually will), would-be buyers will become active customers.
Seasons change
Traditionally, spring continues to be the big real estate selling season. Flowers bloom, the grass is green, pools are open and houses show in their very best light. Parents with school-aged children also wanted to purchase in the spring or summer to ensure the kids could begin a new school in the fall.
While the spring remains to be a strong selling season, today’s buyers are looking online and looking on their phones every day, no matter the season, and transactions happen from New Year’s Day to Christmas Eve.
If you have a home to sell and aren’t in a hurry, consider doing so at a traditionally “off” time. You’ll encounter fewer homes for sale, which means less competition.
Don’t attempt to time the marketplace based upon antiquated assumptions about seasons. It’s more valuable that you show your home in its absolute best condition and choose the proper list price. If it’s priced right and shows well, it will sell anytime.
Money isn’t everythingIf a real estate purchase were purely financial, then we would see every renter who has money in the bank and a solid job getting in the market. But there are practical and emotional considerations. We’ve worked with buyers for months, sometimes years. They were always eligible to purchase, but never pulled the trigger.
Why were they gun shy? Because it doesn’t make sense to put down 20 % and take on a home loan if their job with an hour commute isn’t steady, their marriage is on the rocks, or their aging parents live across the nation.
Renting and maintaining the status quo is completely acceptable should there be any uncertainty within your future. While these buyers are free to shop and learn the marketplace, they may not make a move.
Since the financial meltdown, many buyers are actually reluctant to get back into the real estate market. And for good reason: some of those buyers probably were never qualified to be in the market.
But in many areas, we’ve seen a comeback. Some markets are much better than others. If you believe buying a home is in your future, do your research. Take your time, get your ducks in a row and start to feel the market.
Just understand that nobody can predict when the right house will come along, and you can’t time a real estate market. When the time comes and you need some assistance here in the Tampa Bay and Surrounding areas, Nick & Cindy Davis are here to assist you. We can always be reached at 813-300-7116 or simply click here and we will be in touch with you.