April, May, and June are when us real estate agents say, “The flowers are coming up.” What we mean by that saying is, “Look at all of the For Sale signs in the yards.” 😊
Warren Buffet says, “When people get greedy, I get fearful. When people get fearful, I get greedy.”
Many buyers wait until April and May to buy a new home because they believe it’s the best time to find a home. However, that isn’t always the case when you factor in the competition you could face with other buyers at that time of year.
If you’re ready to buy a home, here’s why it makes sense to move before the market picks up. Right now, buyer demand is low due to a combination of normal seasonal trends and a reaction to last year’s rise in mortgage rates.
But with pent-up demand, economists are projecting that more and more potential buyers are planning to jump into the market.
Additionally, low demand from buyers often means sellers are more motivated to work with buyers and more willing to negotiate.
A recent article from Forbes magazine indicated that sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year. But keep in mind, these advantages won’t last forever. The competition you face could be greater if you wait until April to move.
Savvy buyers should understand this small window in front of them. Higher rates create an opportunity to get a home with significant negotiation power. Less competition opens the door for pricing discounts and seller concessions, where they may get a 2-1 buydown or permanent buydowns paid for. When rates come down and buyers come back, those incentives will go away.
Barry Habib is a real estate market forecaster. He recently provided his forecast regarding the state of the market. I listened to it and it was filled with valuable information that I thought I would share with you.
If you would like to check out this information, click here to watch his YouTube video.
Also, this graph from Fortune Magazine shows that in the future, the median home price is expected to reach $1 million dollars.
Buyers who are purchasing now are facing little competition and are still able to negotiate. More buyers are going to start buying homes causing prices to increase again and negotiation power will disappear.
So as Barry Habib says, “Ask yourself, when do you want to be taking advantage of this opportunity? After everybody sees it and after prices start going up? Or, today, when you can actually get a discount?”
That’s some definite food for thought!
If you or someone you know is interested in making a move, please don’t keep me a secret and please send them my way.
I am always here to help and I’m very grateful for the business.
Thank you so much and Have a Heavenly Day!®
Angelina Feichko, Principal Broker, ABR®, ASP, CDPE, CHMS, CNE, CRS, DRS™, GRI, SRS
Bachelor Degree, Business Administration/Marketing
Sold By An Angel Real Estate®
Oh by the way…If you know of anyone who would appreciate the level of service we provide, please call me with their name and telephone number and we’ll be happy to follow up and take great care of them!