It's the Best Time of the Year for Real Estate Buyers

 Every year, we post some version of the same message to buyers:  If you want to buy a house, the best time to make an offer--if you are serious and can move quickly--is between Halloween and Thanksgiving.  Sellers who really want to sell are beginning to come up against winter, and the end of the calendar and tax years.  They have begun to heat their homes, and sometimes plow their driveways.  There are fewer active buyers, and not all properties have as much curb appeal once leaves have fallen and flowers are gone.  

All of those factors taken together give buyers a last chance to buy in 2021.  The number of multiple offers have declined in most areas, yet mortgage rates are still attractive.  The choice of listings may be smaller, but more of them are actually going to be available for more than a day or two.  If house hunting has been discouraging this year, think about giving it another chance this fall.  

That means that you need to start now, at the beginning of October, so that you can be ready to go to contract in a month.  Buyers, make your lists, set your priorities, and make sure that you are prequalified.  Serious buyers are good buyers, and more likely to be decisive.  If you use that logic to your advantage, you may be spending the holidays in your new home!

Here We Are Again at the Sweet Spot for Buying

Every year, I write the same thing at Halloween:  The period between now and Thanksgiving is the best time to buy a house!  People who want to sell before the end of the year for tax reasons, people who have already moved (or are about to move), people who are trying to avoid the increased maintenance and expense that winter brings, and others who may just want to check a sale off their to do list, are all itching to sell before the true cold weather sets in and the calendar turns to another year.

Buyers who have been waiting should gear up when they read this, because it can often be easier to reach agreement when the clock is ticking, even if it's only a psychological clock.  In addition, rates tend to drop around this time (though we may not see that this year, even a pause would help) and go up in the spring season, so there's another reason to buy now.

Even something as mundane as the inspection can be simpler in the time of  year when the heat is on and the hot water is flowing often.  And, since many workers look to earn extra money during the holidays, it may even result in a faster repair or maintenance appointment.  Mortgage brokers as well want to close before the end of December, as results are usually compared by quarter, and bonuses accrued for that period as well.

So what are you waiting for?  Ready, set, BUY.

From Scary to Thankful

This is the time of year, every year, when I remind people why it's the best season for buying real estate.  Rates tend to be lower than other times, and sellers are often more flexible, because they want to sell before the end of their tax year, and they don't want to head into the cold and snowy season with empty property. 

People who buy between Halloween and Thanksgiving have a fighting chance to close before the end of the year, and they get to start the new year in a new place.  They have less competition than at other times, and they spend less time, on average, both looking and negotiating.  Something about a calendar deadline seems to make people more serious and more efficient.  As an added benefit, no one buys a property where the furnace doesn't work, when the temperature outside is low enough!

So why don't more buyers buy at this point in the calendar?  It's a busy time, and they get distracted with other things.  There is less daylight, when it's easier to see properties.  There are more expenses for holidays and tuitions, so people feel poorer.  There can be weather delays as you get toward winter. 

None of those reasons should outrank the simple time and money advantages.  It might be scary to think about looking on Halloween, but won't you be grateful at Thanksgiving?

Labor Day is Around the Corner

Even though the weekend traffic indicated that many people are headed home after the summer, and that most schools are starting this week, we've always considered Labor Day to be the kickoff for the fall real estate season.  And, even though most people think of spring as the primary buying and selling season, that is less true than it used to be, particularly in Connecticut.  We have an older population and a lower birth rate than other states, so we are less driven by the school year, and maybe more by taxes.  Many people want to buy or sell before the end of a calendar year, to deduct expenses sooner.  If that applies to you, it's time to get moving.

Fall is an excellent time for buyers in particular, since the expenses of heating and plowing start when the temperature drops.  And, given the aforementioned interest in the tax consequences of real estate, autumn is when sellers strongly consider offers that they might not accept earlier in the year.  I say every year, so I'm saying it again now:  The best time to buy real estate is between Halloween and Thanksgiving.  Prices are low, and motivation is high.

Sellers also should pay attention to the fall boomlet, since it's often a new pool of buyers that are beginning to look now.  Properties, especially those new to the market, have fresh eyes to consider them, especially since people spend more time on the internet and with newspapers when they have less daylight to use for other pursuits.  Homes also show well in crisp, clean air and changing leaves.  New England is at its best! 

So during the last picnics of summer, think about your own real estate goals for 2016.  Have you achieved them yet?  If not, the big push toward the close of the year starts now.

Buyers, Your Time of Year Has Arrived!

After years of studying the market, I came to the conclusion years ago that the best time to buy a home is between Halloween and Thanksgiving.  Although this doesn't square with the traditional school-year market cycle, maybe that is exactly the point.  More listings come on in the spring, and many more buyers are out there looking.  They often wait, hoping to have the broadest possible choice.

In the past few years, choice has not been as much of a problem.  We in Connecticut have a higher absorption rate, meaning that our current supply of houses would last for longer at the current rate that properties are selling.  That results in more homes for people to look at during all times of the year.  And, since we have the lowest birth rate, fewer of our buyers have young children than in other states.

So why does that make this the best time of year?  For tax reasons, you can still get your purchase done before the end of the year, but that's not the biggest factor.  The biggest factor is that sellers do not want to take care of properties through the winter.  They have just started heating them, and, if the Farmer's Almanac is correct, they are going to be plowing much more snow than usual this season.  They also know that buyers are scarcer, and that it's harder in winter to get your home ready to sell, plus the landscaping that can sell a home is often less appealing in cold weather. 

All of that combines to make sellers more amenable to offers at the end of the fall.  They, too, would like to conclude the sale before the end of the year in many cases.  They, too, would like to start the new year with a different address.  Use those facts to prod yourselves into action, if you are buyers, and add them to the fact that interest rates, while low already, are usually at their lowest right around Election Day.  That's next week, so you'd better get moving! 

It's That Time of Year Again

Every year at this time, I remind people of my strongly-held belief that the period between Halloween and Thanksgiving is the best time to buy a property.  Heating bills have begun. This year, even plowing bills have begun.  The holiday season is not quite upon us, but the end of the year is beginning to loom.  Anything that is going to get done by December 31st has to be in the works very soon. 

Add all of those factors up, and you come to one conclusion:  If you want to buy a property this year, act quickly.  Make your offer right now, and hurry to close by the end of the year.  You are likely to get the lowest price if you buy now, and take winter worries off the hands of the current owners.  Owners will be worrying that they might not sell until spring, and they will be at their most receptive. 

What are you waiting for?  Stop reading, and call your real estate agent immediately!

It's the Buying Time of Year Again

Our agents have heard me say this every year, but it's time to say it for this blog: The best time to buy a house is between Halloween and Thanksgiving. Sellers are ready to sell, as they start to pay heating bills, think about plowing, and head into the holidays. Buyers are mostly settled into new homes or forgetting about buying until spring. It's hard to show houses in the winter. There's snow and ice, not to mention cold. Parking and driveways can make open houses and showings tricky. Although many homes show well when they are decorated for the holidays, most families are busy at that time of year and don't want to have to keep their homes clutter-free and ready to show. Most buildings look better in light, and there isn't much of it in the dead of winter. All of that adds up to the realization that, if you haven't sold your home within the next three weeks, you probably aren't going to sell it until the spring.

Despite that chilling thought, there are sellers who want to move at this time of year. For one thing, some have tax reasons for wishing to close before year end. Some have jobs or commitments in other places. Some are tired of the selling process, and some have another home waiting for them. Some just want to spend the winter in a warmer place. All of those people are competing for the buyers still looking when winter comes. Therefore, if you are an eager seller, you are most likely to compromise on the price at this time of year.

Buyers can capitalize on these factors to negotiate for a better price as the weather gets cold, especially if the home is empty and sellers are worried about freezing pipes and empty oil tanks, or even just heating and plowing bills. This is the time of year when a month of expenses can easily become six months of expenses, and sellers will take that into account.

If you are a buyer, particularly a buyer with cash, here's your chance! Don't waste it--buy now.

Back Down Again?

It's quiet in our offices this month--really, really quiet. Now we're reading that the national trends say that the uptick ended in about July, which, coincidentally, is what we saw. It was far busier through July than it typically is in the summer. It was slower in August, but that is almost always true. After Labor Day, we usually see a marked increase in activity. That lasts until about Halloween, or maybe Thanksgiving, and then the buyers hibernate like bears until the spring.

We're not quite sure what to make of this latest turn of events. The stimulus program and the $8000 tax credit for first-time homebuyers were supposed to be making the phones ring. Indeed, it did, but the phones have slowed down. I can only speculate, and my guess would be that the market will not stay up until unemployment comes down. I also think that the hoopla over national health insurance has people worried about costs. Whatever the reason, it's not good.

One of the earliest CEOs of General Motors famously said that "what's good for General Motors is good for America". I would argue that the same is true of real estate. The government needs to do what it has to do in order to stimulate the real estate market at all levels, not just at the lowest end. The recovery depends upon it.