The notion that summertime prices are always the highest prices is a myth. The truth is that there are a number of factors that determine home pricing such as summer slowdown at the office, fluctuating interest rates, general economic health, and this year: COVID. Regardless of the state of the housing market, there are a few things to keep in mind as you are house hunting this summer.
Look at homes listed in the spring
Many people view the spring as a great time to put their house on the market. You want to keep this in mind as you are looking at homes. Houses that have been listed since the spring are more likely to have a price drop than other homes. Keeping an eye on those that have been listed for a bit of a longer can allow you to take advantage of significant savings when that property does see a decrease.
School’s out…sort of
Consider the liveliness of neighborhoods you’re looking into. Most neighborhoods would normally have a bunch of children outside playing until school picks up again in September. Social distancing and quarantining makes it a little more difficult to get and idea of the type of neighborhood it is. Keep in mind that the number of kids and activity is likely not a reflection of a normal summer.
Be prepared to buy
Get preapproved. If you were selling your home and someone brought to the table an offer with a firm preapproval that has been fully underwritten vs. someone who was not preapproved with the same offer, you’ll probably accept the offer with the firm preapproval. Getting preapproved gives you a step up – there’s simply zero benefit in putting it off. Keep an eye on interest rates at least once a week as there can be unpredictable fluctuations.
Finally, remember this: newly listed houses tend to decrease in price after 1-2 months. Sometimes patience can pay off in a big way.
Have questions? Feel free to reach out to Scott Bennett at 503-703-4699 or firstname.lastname@example.org to talk about your current situation.