Lots of people ask me when is the best to buy a home. My answer is always yesterday. No really, what I meant was that in my 26 years as a real estate professional, the market has always gone up. If they were just asking about what time of year is best then I would let them know that now is a great time. My reason for this answer is not to be smart or adversarial but to let them know that the real estate market is a present-day market. That means to me that if someone wanted to buy a home, they should set up a wants and needs parameter worksheet and if that home is there today then buy it.
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Some would say, “Well won’t there be more homes to choose from in the Spring or Summer?” Yes, there will be, but there will also be more competition from buyers who are waiting or just decided to buy a home. This would mean you have to pay more or compete on every home that met their wants and needs. In the summer months as the inventory gets onto the market, in spring we often see higher prices and super competitive offers many times meaning we write several homes before finally being an accepted offer. Oftentimes, that means giving in on some of the buyer’s wants and focusing on the needs when searching for a home. Often, this is less satisfying for a buyer who didn’t get some of the dream items and only their basic needs met.
As seen on April last year, “median prices system-wide surged 19.5%” compared to 2020. In addition, during this time, Meredith Hansen, NWMLS director and owner at KW Greater Seattle comments, “If no new inventory came on the market, we are at 2.19 weeks of inventory, leading to bidding wars, escalating prices, and severe buyer fatigue” [1].
Fall and Winter can be interesting, as school starts back up and as the weather changes, we see inventory tail off which means buyers are waiting for the spring inventory again. This is the time of year I feel is the time when buyers have less competition and sometimes get a better deal from the homeowners who haven’t sold during the hot part of the market. Yes, there is less inventory but with fewer buyers competing and sellers willing to negotiate then you may find that you get more of your wants and at the very least you are able to put the signature together on a contract and begin the process to homeownership.
In fact, when August came last year, housing inventory slowed down from the previous month of July. In addition, housing prices in half of the counties were also seen to drop during this time. Matthew Gardner of Windemere Real Estate describes “In King County, median list prices dropped from $740,000 in July to $729,000 in August.” [2].
Due to the expected increase in higher mortgage percentages, J. Lennox Scott, of John L. Scott Real Estate, says that “buyers are more anxious to get a home, even during the inventory shortage” [3]. With housing prices increasing, basically now is the best time buy a home. Can you believe that the increase in the percentage of the median closed price last August 2021 was 18.2% from 2020’s [4]?
How can we help you? If you’re planning to buy or sell a home, get in touch with us! Community Real Estate is a team of Trusted Advisors in Tri-cities, Washington when it comes to real estate and home equity positions. You might also want to check out this Ultimate Real Estate Guide that might just be helpful for you!
References
[1] NWMLS. (April 7, 2021). Northwest MLS brokers say bidding wars, escalating prices, and buyer fatigue are widespread. Retrieved from https://www.nwmls.com/News–Information/page/Northwest-MLS-brokers-say-bidding-wars-escalating-prices-and-buyer-fatigue-are-widespread
[2] NWMLS. (September 7, 2021). Northwest MLS brokers say August housing activity follows patterns of seasonal slowing Retrieved from https://www.nwmls.com/library/CorporateContent/PressRelease/2021/NWMLS%20NR_September%202021.pdf
[3] NWMLS. (February 7, 2022). Retrieved from https://www.nwmls.com/News–Information/page/Northwest-MLS-brokers-see-signs-of-busy-spring-market-despite-slow-January
[4] NWMLS. (September 2021). NWMLS August 2021 Real Estate Market Report. Retrieved from https://vimeo.com/596122517?embedded=true&source=video_title&owner=142498696