How to Make Use of Home Buyer's Advantage
2016 is a very competitive year for home buyers as they struggle to find their perfect home at a time when there is less inventory and lenders are very stringent with qualifying loan applications. The new norm is to get preapproval prior to going house hunting, as this would make home purchase faster and closing easier for the buyers, thereby giving them competitive advantage over other buyers who are not as well prepared.
There are lesser active listings at this time compared to last year, but thanks to the shifting market conditions at the start of the school year, buyers can actually begin to relax and feel confident about finding a home that they can buy. Jonathan Smoke, chieve economist of Realtor.com®, explains that the market has entered a new, slower phase, and in spite of the lesser active listings, buyers can actually start house hunting with less hassle.
“The real estate cycle has shifted into its slower fall phase, and we see it evident in the median days on the market.”
--Jonathan Smoke, realtor.com®’s chief economist in his latest column.
The median days on market for May and June 2016 is 65 days, but the ADOM of the August-September period is expected to reach 72, perhaps more. Smoke notes that the demand for real estate follows an extremely seasonal pattern. June is the busiest home buying month, with more than 75% sales than December which is consequently the slowest month of the year for home sales.
Another factor that can also affect home buying patterns is the weather. In colder areas, winter is the least-favored time to buy a home. The school calendar is another factor that affects home buying, as families do not want to move when the school year is still ongoing. Ultimately, we are at a time when there are lesser home buyers looking at the market, so there is more opportunity for committed buyers to find and settle on buying a home that they like without worrying too much about competition. This home buyer's advantage will last until January next year, right before spring starts. Be prepared to enjoy the advantages of buying lower-priced homes without any worry of other buyers snatching up the home you want.
“When the cycle favors buyers, prices weaken and inventory sits longer,” Smoke notes. “So even in a tough ‘seller’s market’ like this one, the cycle can be your friend if you are willing to buy when others aren’t as interested.”
Want to know more about home buyer's advantage and how it can help you land the home of your dreams? You can visit the resource article from which this post was based here.