Have you ever noticed how so many things have their “Season?” Football season in the fall, Christmas and family time in the winter, gardening in the spring, and vacations in the summer. It’s human nature to notice patterns, especially when it comes to associating a time of year with activities we regularly participate in.
While most people aren’t involved in real estate all year long, there are signs you might notice as you go about your normal life. These signs are quite often the big FOR SALE signs out front of houses in your neighborhood! It can seem like spring is that “season” for buying a new home. It is true, spring is a very popular time of year for selling a home as many are families looking to move during the summer so their children can start in the new school come fall.
The reality is that real estate doesn’t have a season. While there might be market fluctuations, drops, or surges in supply and demand, properties are trading hands all year round. There are buyers actively looking for homes during all four seasons. Just think about why people move: they need more space, they want less responsibility, or they had to move to a new city to follow a job. None of these reasons have anything to do with the time of the year or the weather outside. This continuous cycle of people needing to buy a new home and selling their old home is what keeps the market going, even in “slower” months. Just like any commodity, real estate is impacted by supply and demand. As demand rises or falls, prices are subject to fluctuate based on market inventory which has an effect on buyers and sellers.
If you’re thinking about buying, you might be enticed to wait until prices start to drop. On the surface, that makes sense…until you realize that your current home will probably sell for a lower price to. Any money you might’ve made by saving on the purchase, you’ll “lose” in your own sale. That’s why the best time to buy or sell is now. Why wait for the uncertainty of tomorrow, when you know what to expect today?
Here’s something else to think about: interest rates have been rising. “While the federal funds rate doesn’t really impact mortgage rates, which depend largely on the 10-year Treasury yield, they’re often moving the same way for similar reasons,” according to Bankrate. This will cool down demand, and may contribute to a decrease in prices across the market. If you’re thinking about selling, you might want to strike now while rates are still manageable and there is still a great number of buyers looking for properties.