Buying a home is usually one of the most important financial undertakings of your life. So, it’s important to spend your money wisely. There are several factors that have a bearing on the price of a home. A few factors like size and location are obvious.
However, seasons have an impact on real estate prices as well. So, if you’re buying a home in summer, it’s important to know the real estate trends of summer. In a nutshell, know that summer is busy in the real estate world.
Usually, this is the season that sees most home sales for the year. Spring comes close, but summer is the time that most home sales happen. So, it’s important to know how you can get a good deal for a great home in summer.
Buying a Home in Summer
If you’re looking for great deals, early summer may not be ideal for you. The demand is very high and as a result, home sellers don’t bargain at all.
The month of June is especially bad if you’re a buyer. Median home prices go up to $307,571 across the U.S. Across most states, June is the busiest month of the year. More deals are closed in June than they are in any other month.
So, with this being the state of affairs, let’s look at the most important things to consider if you’re buying a home in summer.
The Number of Homebuyers in the Market
Summer, in the real estate world, is a busy period. Thanks to summer holidays and whatnot, there are a lot of people looking to buy homes. The demand, therefore, is very high.
When the demand is high, naturally, prices are high too. Thanks to this uptick in the number of people trying to buy a home, most sellers don’t bargain much. Don’t be surprised if some sellers don’t bargain at all.
So, if you’re looking for a great deal, this isn’t the time to buy a home. If you can help it, consider buying in the winter. Home prices across all states fall during the winter. Median home prices go down to $254,914.
What’s more, sellers are more than willing to negotiate during winter. However, if you have to buy in the summer, be prepared to face competition. Other buyers outbidding you will be a common feature during summer.
Median Sales Price
As we saw earlier, median home prices are close to $310,000 during summer. The reason is quite simple. There are quite a lot of people who want to buy a home in summer. As a result, bidding wars are common.
People routinely outbid each other in order to secure a home. So, if you’re thinking of putting in a conservative bid, think again. People outbid each other all the time and only the highest bidder (or the best bid) gets the home.
A good real estate agent can help you navigate this situation better.
The Possibility of a Decrease in Home Prices
Even though prices dramatically rise in the summer, they will come down. By the end of the summer, prices are usually significantly lower. So, if you’re not in a hurry to buy, wait until the end of summer.
This becomes obvious when you look at the median home prices at the end of summer. By the last week of July and during early-August, median home prices fall sharply to $260,000. Yes, it’s still higher than the median home price, but there’s a drop of about $47,000 within a span of two months.
So, if you’re not in a hurry, wait until the end of summer.
Total Home Inventory
Total home inventory refers to all the listings in a month, including homes that have been listed and sold successfully.
As a buyer, you can use the total home inventory to gauge public interest in any given month. So, if there are a lot of listings and successful deals, you know that prices are going to be high. Remember, demand and price are directly proportional.
And true to this logic, June usually has the highest number of listings and successful deals. As a result, prices are high. If you check the inventory for other months, you’ll see that there are significantly fewer listings on the market.
So, use the inventory to understand the exact mood of the market for any given month.
New listings indicate the state of real estate supply in a city. If there are plenty of new listings and very few successful deals, know that there’s a lot of room for negotiation.
You’ll typically see this during the end of summer. The number of homes for sale is more than the number of buyers. End of July and early-August, as a result, are better if you’re a home buyer.
When is the Best Time to Purchase a Home?
If you want the best price, winter is ideal. However, if you have to buy a home in summer, see if you can hold off until the end of summer. Prices start to fall and you’ll be able to get much better deals.
Also, January is a good month if you’re looking to buy. Median prices of homes fall to $254,914.
Why You Should Hire an Expert Real Estate Agent
Buying a home in summer isn’t difficult. However, buying a home in summer for a great price is. If you want a good deal, hiring an experienced local real estate agent is the best thing you can do.
Real estate agents do much more than just show you houses. They know the market trends precisely and can help you find great homes at a great price. And for all the talk about real estate trends, every city has a quirk or a specific trend of its own. The people who know these best are experienced local real estate agents.
One way to hire an expert real estate agent is by getting in touch with a Clever Partner Agent. They are full-service agents who will help you with every step of the home buying process.
Clever only partners with the best agents in any given city. So, you know that the agent representing you is one of the best in the business.