Spring is widely known as the busiest time in the home buying calendar. But is spring really the best time for investing in a new home or other new property, or is that merely an industry myth?
It’s true that spring is the most active time in the property market. Many real estate agents will advise sellers to hold off listing their property over the winter to gather more buyers. This is the reason behind an oversupply of houses in the spring: the rush of sellers suddenly floods the market. Depending on the proportion of buyers to sellers, all this new inventory can have different practical effects.
For a better understanding, we’ll take a look at other factors that contribute to the spring market.
- THE ECONOMIC CLIMATE
The prevailing economic factors in entire market–inflation, investor confidence, unemployment–determine what number of buyers feel they can buy in the spring season. To predict a good season, watch for lower interest rates. They often attract more home buyers, as applying for loans become more affordable without tearing up the buyer’s pocket.
- THE DUAL EFFECT
Studies have revealed that the spring has a dual effect, sometime benefiting sellers and sometimes buyers. As the number of buyers increases, the market grows competitive. Sellers can choose buyers with better price quotes. On the other hand, if enough people decide to sell their homes, buyers can end up with the edge and receive multiple deals to choose from.
Heading into a spring property season where interest rates are at record lows, it is likely that the 2017 season will be quite competitive. This means it might be more difficult for buyers to negotiate a lower price for the home they want.
- MORE INTEREST; MORE INVENTORY
When May rolls around, property listings multiply like crocuses. One reason is that homes look better in the spring, with all the blooming flowers and no snow. Sellers also feel more motivated once the warmer weather rolls around, as they hear about all the bidding wars that result from springtime listings.
Spring also swells the number of buyers. The cold weather can deter buyers from shopping for a home in winter, while many prospective buyers may be planning to go on holidays later in the summer months; spring is the perfect middle time to look for a new home.
If you’re thinking of buying homes in the spring season, real estate agents can help. Stay in touch with your agent to get information about the best deals in the market for you.