Home Buying Trends in the Busy Spring Season
When it comes to selling homes or recovery of the housing market, it is said that spring would be the best season to gain in terms of sales and prices. It is the best time, as buyers or shoppers come out from winter climate and begin hunting for new homes. Summer and spring are traditionally the busiest months in residential realty industry. Weather would be more supportive and many families opt to shift, while the children are on summer vacation. The spring season has also become quiet corporative for the market, which is witnessing more home buyers, increase in costs, as well as fierce competition.
If you want to sell your home during the spring, you need to take some steps so that you get benefit over the buyers. If you are going to deal with realtor professionals or real estate firms, like John D Wood Estate Agents, you’ll have to begin the process at the earliest. Get references and interview couple of them, so that you get an idea of what exactly you are looking for. If you want to buy in this season, you’ll have to prepare for pre-approved loans; it would offer you benefit on several fronts.
The prospect of changes has made shoppers even more impatient, while it leaves the reverse effect on dealers or landlords, who wait for the business to rise more and more, before getting houses in market. All these factors have pushed up the prices, dominating the spring house buying business. Below listed are some of the latest trends for the spring season of home buying.
Distressed Sales Moved into Conventional
The year-over-year foreclosure register has increased in the very first quarter of this year (2013), though the overall inventory is quite down since its high in 2010. This led to move to conventional sales, with distressed assets and foreclosures accounting for two in every ten sales compared with two in every five sales, way back in 2010. The shadow inventory has just begun to shrink.
Increase in Home Price due to Tight Inventory
After substantial decrease for few years, the home prices have been on steady rise and January 2013 saw 8% year-over-year gain. The price would climb up as the inventory of houses for sale continues tight throughout the spring. Though inflation is drawing serious sellers to the real estate business, many are looking for stronger price hikes. Combined with the low foreclosures in the market has reduced gains in house sales, which ultimately led to limited consumer choice. The inventory issues would be sorted out, if more construction or building works occur, as it is relatively low now.
Cheaper to Purchase than Rent
Though house prices are increasing, it is still cheaper to purchase than taking it for rent, especially in major metropolitan regions. This trend is going to continue this year as well, and investors can take huge benefit of rising rents and demand for rental property.
Financing Still Remains as an Obstacle
Though increase in house prices have made buyers keen to make offers, tight loan is still stopping them to confirm the deals. Another factor that remains as a barrier is the higher down-payment charges. House builders are also facing some trouble in terms of accessing capital and on the whole, financing still remains as the main obstacle in housing market.