Real Estate Education 101: 3 Reasons To Buy Before Summer Ends
Spring may have been the official home buying season in the past, but things are a little different now. Thanks to most of the globe grinding to a halt over the US spring months, homeowners and buyers are emerging a little later than normal.
So much so, that home sales spiked by 21% in June. With more inventory than normal, lower mortgage rates, and a massive influx of enthusiastic buyers leaving their homes—bleary-eyed post-quarantine—there’s actually never been a better time to buy.
Traditionally, high levels of unemployment and economic disruption are harbingers of temporary doom and gloom for the real estate market. Not so in 2020.
If you’re ready to buy, here are 3 reasons to strike while the iron is summer-hot—proudly brought to you by Pacific Playa Realty’s Real Estate Education 101 Guide.
Reasons To Buy Before Summer Ends
#1. Robust Inventory
Home buyers need choices. We don’t expect Los Angeles buyers to choose the first home we show them—or even the fifth sometimes. You need options, and as the real estate agent Los Angeles trusts, we offer options. Our expertise in housing inventories, neighborhoods and niche opportunities gives our clients a winning edge.. Summer is a great time for house shopping as families are trying to shift property and get settled somewhere new before the kids head back to school or move to a place that is better based on the new “digital learning” footprint.
The other bonus to a growing real estate inventory is your position in negotiations. It’s a simple case of supply and demand and seller motivation—the more houses on the market, the more demand is driven down. Lower demand means lower prices—and more bargaining power for you. Sellers are more open to concessions depending upon the price as some properties are still experiencing bidding wars when the pricing is reasonable and the condition is good.
#2. High Seller Activity
There’s a common misconception that homes sell for more in summer.
Home prices might peak in the summer months—specifically in June and July—but there is more to the equation when it comes to buying a home in the middle of summer.
The job market. Record unemployment rates—like the historically high numbers we’re seeing in the Covid-19 era—typically drive down sale prices.
Interest rates. High mortgage rates typically herald a recessive market. Mortgage rates at the moment aren’t following that trend—but they likely will if buyers don’t move fast.
Inventory. As we’ve already explored, a larger number of properties on the residential market push the ball into the buyers’ court.
#3. The Pressure Is On
Often, sellers who have listed their properties at the beginning of summer are feeling pressure when the season is winding up and they haven’t finalized a sale.
In these situations—where a property is still on the market come August—buyers are likely to find that sellers are more open to negotiating. This is a huge coup for home buyers who don’t become fatigued with the house hunt.
Effectively, the less pressure you are under to find your home right now, the more empowered you are to find the right fit—at the right price—for you. The tail end of the summer season really is the sweet spot for many a home buyer.
There’s one other reason summer is still the perfect season to buy your new home: you can explore on foot. This is a great way to explore the neighborhood, get a feel for the area, and see how much sun that dream home really gets.
Summer isn’t over—get out there and find your dream home! And if you need help, call the real estate agent Los Angeles buyers count on.
