Friday, August 11, 2017

End of Summer Push for Buyers

The end of summer is near and buyers may be getting even more anxious. Many people prefer a move during summer months. Little or no rain makes for an easier move and often a move is disruptive during the school year when children are involved. Seller's may see a bit of a dip in activity as September comes to a close so the rest of this month and all of next could be the best time to unload your listing that may have sat unsold this summer.

Seller's that sell late in the summer gain the advantage of the seasonal bump and then purchase during a time that tends to slump a bit. Lately the slump has been a slowdown in growth rather than an actual lower price, but in any case the seller that wraps up their home now may gain a slight advantage at both ends with a top dollar sale and a less competitive buy.

Rates remain solidly low and hikes are coming. We have already seen the Fed move away from some of their market manipulation that led to temporary spikes in rates. These have since backed off a bit but may become permanent should the economy continue the track of positive growth.

Interest rates are the single most important factor in home buying unless one is paying cash. Even cash buyers are affected however as low rates bring a larger pool of potential buyers into the market. Should rates pop of a full point and stay there, the buyer pool will shrink and the upward pressure on pricing will subside.

Entry level always takes the biggest hit in a rising rate market. Sellers locally offer homes in the under $350k range are most vulnerable to a rising rate market. Although things are stable now, one never knows what might trigger a stiff rise in rates and both buyers and sellers should remain vigilant and take care of their real estate business now, why things are really good.

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