If you’re selling and/or buying a home this spring, you’ll need to know what the trends are for both buying and selling in order to be prepared for the current real estate market. With a few of our home buying tips, you should be well ready to start looking, bidding and planning your buy!
Here’s the biggest scoop of the spring season: house valuation is going up! This should be music to your ears if you’re selling your house because now, you’ll most likely be able to get a great offer, which will prep you for buying your next home…but when it comes to buying a home for the first time, this piece of news can be daunting. Here are a few reasons house valuation is going up, and then after going into that, we’ll discuss a little about the current home-buying market.
Home Buying and Selling Price Trends
For those of you about to sell your house, the current home price trends will whet your appetite. According to CoreLogic, home prices have been increasing since January 2016 by approximately 6.9% and will keep rising into January 2018.
Whether this is in your favor or not, why is this happening?
CoreLogic Chief Economist Frank Nothaft says, “With lean for-sale inventories and low rental vacancy rates, many markets have seen housing prices outpace inflation. Over the 12 months through January of this year, the CoreLogic Home Price Index recorded a 6.9% rise in home prices nationally and the CoreLogic Single-Family Rental Index was up 2.7%–both rising faster than inflation.”
CoreLogic President Frank Martell says that the spring home buying season is incredibly strong. With tight housing stocks, economic recovery, and low mortgage rates, the average house price should continue to go up.
The problem lies in however, lack of supply and incredibly high demand. At some point, one imagines that the prices may decrease. How long can they keep climbing? One only knows, so get that house on the market now, if you’re trying to sell.
For first-time homebuyers, this news can be tough to swallow. Higher prices and lack of housing? Not happy news. According to Realtor.com, over half of all house hunters—52%– are first-time homebuyers. This makes the competition for starter homes in suburban areas much tougher.
More and more first-time homebuyers are on the market due to a recent marriage, a desire to have kids or expand the family, a desire for more space for the children.
So when is the best time to buy a home when you’re first in the market? Well, it’s drastically different than if you’ve already bought a house before.
Best Time to Buy a Home? Try That Winter Purchase
Most people will be out in full force to purchase a home this spring, but everyone knows that summer is when prices are higher. Families are looking to get situated into school districts for children, making middle of the year moves much harder to pull off. For those of you selling a property, go for spring—you’ll have a nice offer to put towards your next home.
But if you’re in the home buying market for the first-time, you may want to consider the benefit of buying a home in fall or winter, to avoid being outbid by someone who may have a more significant down payment to put on a home. Many first-time homebuyers struggle with having enough to put down—so doing this would help you avoid such an issue. With spring and summer so competitive, you’re also more likely to engage in a bidding war that could be really time consuming and draining emotionally. If you can’t hold off until the cooler months, just be prepared to potentially duke it out with offers, especially if you’re looking to buy in the suburbs.
Good luck! And happy house hunting!