Should I buy now or wait until spring? I’ve been asked this question a lot lately. Everyone has a different story so my first response is often a question…When would work best for you? It often depends on your life situation. Are you renting and need to wait out your lease? Or can you end the lease without penalty? Do you need to sell a home first before buying? Or can you afford to buy first and sell later? Would you like your kids to finish out the year before switching schools? Maybe you’re moving into town and want to get settled before starting a new job. Or you may be living with parents or family with maximum moving flexibility.
Spring: more choices, more competition
If you’re not bound by leases, job transfers or school schedules, consider our seasonal market trends along with the larger economic picture. In Minnesota spring is typically the hottest season for real estate. Historically, more homes get listed in the spring and summer months, so as a buyer you’ll have more to choose from. You’ll also have more competition. Warm weather coupled with an expanding inventory attracts more home shoppers. The last few spring markets have been highly competitive with multiple offers and overbidding as the norm in the most desirable homes and neighborhoods. Low inventory has been a major factor, especially at the starter-home price point.
Seasonal trend | New Listings
Winter: price drops & low inventory
Winter months, especially around major holidays, tend to slow market activity. As a buyer, you may be in a better position to negotiate a lower price during these months. The slower pace may give you more time to process, decide and present your offer. Anxious sellers might be more willing to consider price drops during colder months as they rack up days on market. But don’t expect an automatic deal. Some sellers are more than willing to wait out the slower months in hopes of a strong offer come spring. They may even decide to temporarily pull their house from the market over the holidays then pop it back on once the weather warms.
Seasonal trend | Median sales price
Get ready
My best advice is to be prepared. Get your finances ready with a pre-approval in hand, watch for new listings and get out there. Visit as many houses as you can so you know exactly what you want and don’t want. Walking through a house is very different from clicking through pictures, so take the time to tour! Open houses are one way of course but private showings are even better (do it on your time without the seller’s agent hovering.) If you find your dream home in the slower winter months, perfect! Make your move. If not, hold tight, there’ll be more to come as spring approaches.
If you’re seeing houses online and what to know more, give me a call or email to set up a private tour or get details on particular listing. 651-503-1540 | heidi@lyndenrealty.com
Heidi Swanson is a Realtor® based in St. Paul, Minnesota. She writes a blog to share information on variety of topics including buying and selling, market conditions, homeownership trends, local events and more. Reach her at heidi@lyndenrealty.com or 651-503-1540.