A Buyers Market: The Case Against Waiting for Spring

October 25, 2017 | Buying a Home | By: Allison

Week in and week out at our open houses, we hear buyers say they are just scoping out the market and waiting to buy until Spring. It’s true, Spring is the busiest time of year in the real estate world so there are more listings on the market, but there are also more buyers! So, does that mean it’s the right time to buy or sell?

More buyers means more competition, making other times of year ripe for a good deal on a house.

While every year is different, Spring tells to be more of a sellers market with multiple bids and escalations for properties in popular areas that are priced right. Summer, Fall and Winter are typically buyers markets, in which you are rarely in competition with other buyers. To illustrate the shift in advantage, we took a look at the average absorption rates in our area (Northern Virginia) for 2016. An absorption rate is the percentage of properties on the market each month that go under contract. In our area, an even market is typically around 40-45%.

Above 45% is typically a sellers market and below 40% is typically a buyers market.

January: 37% = Buyers market

February: 49% = Sellers market

March: 56% = Sellers market

April: 52%  = Sellers market

May: 50% = Sellers market

June: 45% = Sellers market

July: 41% = Even market

August: 41% = Even market

September: 35% = Buyers market

October: 38% = Buyers market

November: 41% =Even market

December: 42%= Even market

With rates as low as they have been in a while, now really is a great time to buy.

Let us know if you would like to chat about preparing to buy a property now, or how to position yourself to beat the competition in the Spring. We are always here to help! Next, we will talk about how interest rates and credit score affect your monthly payment.