During the fall I am often asked “Should I buy now or wait until next spring?” Without a doubt I always recommend buying in the fall. After school starts back up and the holidays roll in, most buyers decide to shelve their home search and wait until spring. This is exactly what you want as a buyer because there is less competition and more options are available.
Buying in the fall is all about supply and demand. Since there is normally a smaller supply of buyers, sellers may not demand as much as they would in a hot market. That doesn’t mean you’ll be the only person placing offers, but you’re more likely to compete with a two versus eight or nine offers. In the fall, houses tend to stay on the market longer, which puts pressure on the seller and in turn makes them more willing to negotiate.
Last year’s East Bay market is a perfect example. In 2013, homes appreciation was very high. The best properties received in excess of ten or twenty offers right up until October. Starting in October, some houses were taking a longer to sell, so some sellers began to reduce their asking prices and were willing to negotiate on price and terms. During that period properties took longer to sell. I also noticed that some buyers with FHA loans were able to purchase homes since they didn’t face the competition from large down payments, no appraisal contingencies and cash offers. Once January 2014 arrived, the market heated up again, making it a challenge for buyers once more.
The two graphs above show median sale price and number of homes sold in the Bay Area from August 2013 through August 2014. The trends are very clear. Although there are a fewer homes being sold outside of peak season, the prices are still lower, with some of the lowest prices being in November and December.
So here we are again entering the last quarter of the year. If you are thinking of purchasing a home, my advice is don’t wait. Call or text me at (925) 570-4841. You can also email me at marco@marcogetsresults.com or visit my webpage http://www.marcogetsresults.net/ for a free home search.
Comments(1)