Biggest Reason To Buy Now And Not Wait Until Spring
Why do more people want to buy in the spring than the fall? Who knows! Every year there are more homes on the market in the fall than the spring. More homes gives buyers more to choose from, more time to look, less chance of a bidding war and more negotiating power overall. This fall is no different.
Homes for sale:
Inventory peaked to its highest point all year two weeks ago with over 26,000 homes for sale in Massachusetts according to MLSPIN. There are still over 25,000 homes for sale right now that is 50% more homes for sale than in the spring. Granted a portion of the inventory is overpriced because many home sellers based their prices on spring sale prices back when inventory was much lower as described in Anthony’s Boston Globe column Sorry Sellers Spring is over.
As you can see above inventory is at its lowest in the winter. This causes prices to peak every summer when all the spring sales actually close. We explained this in depth in a blog earlier this year called List Your Home in the Winter to Get a Higher Price. As inventory peaks in the fall sale prices are lower when they close in the winter which is illustrated in the chart below.
If you are planning to buy a home it would be in your best interest to buy before the end of the year than it would be to wait until the spring. But be careful and don’t get unrealistic and try to buy a home for much less than it is worth. Doing that could cost you a good home. This time of the year with increased inventory we tend to see unrealistic buyers a bit more often. If you find the home that is right for you compare its price to what others have sold for in the area and if it is in the correct range buy it!
Right now in the middle of October we are seeing a typical lull in the market. The reason this happens is inventory is high and buyers feel that they still have plenty of time to buy before the end of the year. We predict this will last about two more weeks and then we will see an increase of activity and offers on properties in the month of November for all of those who want to close by years end. Therefore as a buyer the best time to strike is in the next two weeks.
What should a seller do?
If you are a home seller don’t panic. The market is still busy but since buyers have more to choose from they move a bit slower. Just make sure you are priced competitively compared to other homes that are for sale and priced within the range of recent sales in your neighborhood. If you do both of these correctly your home will sell. The good news is this year’s fall market is stronger than last year’s when inventory swelled to even higher levels than we are seeing now and the entire market was slow. To watch a news segment from September 2014 when Anthony explained the beginning of last fall’s excessive slow down click here.