Time to rejoice: Summer's almost here. 'Tis the season to embrace long weekends, swap that rosé for frosé, and take in the ever present aroma of outdoor grilling. For those whose summer plans include looking for a new home, the good news is that with the right expectations, you’ll find that that Summer is an excellent to purchase.
Intrigued? Well, keep on reading.
Real estate is cyclical in nature
The real estate market tends to hibernate during the colder months, only to return with a vengeance once temperatures are on the rise again.
This behavior isn’t as random as it may seem. Rather, it’s a direct consequence of buyer behavior because, you know, supply and demand.
Fall and Winter generally see a decrease in activity from buyers -- as some are preoccupied with holiday preparations and travel -- while others just don’t find the idea of braving the elements to view properties remotely appealing.
Because it’s crucial for buyers to have their financial ducks in a row to secure financing (with many lenders requiring applicants to supply at least 3 years of income tax filings to determine their ability to repay the loan), many prospective buyers will press pause on their house hunt until after tax season is over and the IRS is appeased.
These factors help build a market that lies more dormant than usual for months, and then then booms back into business in the second quarter of the year.
With warmer weather comes warmer markets
Most major markets like New York, Chicago, and Los Angeles will experience an influx of new listings (and buyers) between the months of March and June. Nationwide, that peak occurs April-June.
So, what does it mean for you, if you're looking to buy during peak homebuying season?
For starters, the inventory might be slim pickins’. It’s likely that you’ll have fewer options if you’re purchasing during the Summer than you would in Spring.
The number of new listings decreases in the Summer. Like the Fall and Winter holiday season, Summer is a big travel season for many people.
The prospect of juggling the logistics of selling a home with road trips, beach days, and family reunions isn’t exactly desirable to sellers. Another element that contributes to the smaller pool of available properties is a simple one: other buyers have already scooped up most of the available listings in the months prior.
Longer days (on market)
During the Summer, you’ll also notice that some of the homes you encounter might have been listed for slightly longer than what's typical for the area.
But, the number of days a property has been on the market isn’t always indicative of its condition or value.
On the contrary, you might actually find an excellent listing that is BOM (back on market) because a previous buyer canceled their contract. It’s the perfect opportunity to turn someone else’s lemons into your own refreshing glass of lemonade...complete with killer views and new flooring.
Summer also means hotter deals
One of the best things about buying a home during the Summer is that it’s more budget friendly. You're more likely to have an offer at or under asking accepted, and you’re also more likely to see sellers lowering the listing prices of their homes.
If you’re not about that bidding war drama, then Summer might be your season.
There's generally less competition for those who start their search after June. You can also expect sellers to be more open to negotiations. This means receiving counters offers rather than flat out offer rejections.
Regardless of when you choose to purchase your home, if you #BuyItWithOL, you can get up to a 50% commission refund, and let’s be honest, in this market (and pretty much any time in life), more money is great.