With market dynamics and conditions still far from "normal trending" and "historical" I have been asked what to expect by waiting for Spring Market for a buy or sale. With our market undergoing transition, could Winter market actually be a stronger market than Spring based on current dynamics?
Historically, Spring sees the most buyers and sellers in the market in our area. Since Covid, historical patterns have been on hiatus and we rather experienced one long Spring market since June, 2020. While there are a number of buyers that have been pushed out of the market due primarily to increased interest rates, there are a healthy amount of buyers putting on snow boots and actively seeking properties across price points. I have multiple buyers right now from modest through multimillion chomping at the bit to buy frustrated by continued inventory shortage.
While our area will likely continue to see marginal inventory increase in 2023, it should stay significantly below the "normal trending" years just prior to Covid. Relief is not expected near term with sellers planning to continue financing for subsequent home disincentivized to sell if holding rates of 3% or below on current mortgage, which the greater majority at this point do between straight mortgages and refinances.
All in, here's the deal...
My bet for Sellers and Buyers is on Winter 2023 over Spring Market 2023. The Fed meeting in February is of definite concern. If the interest rates tick up again, Spring Market 2023 could feel a real hit.
Buyers no longer need to "get a feel for the market before diving in". Many have already been searching since last Spring market at a minimum. Pre-Covid buyers were more affected by paint colors, decor and seasonal changes. The buyers of today have generally seen enough homes and properties to see past trees without leaves and personal homeowner choices. Buyers have absolutely evolved by having much more time in the market than the norm since Covid. There are buyers out now that prefer closing in June, but if they can find what they want, they will buy now. Those buyers could align well with sellers that prefer a June closing without waiting until Spring Market for their buyers.
Should there be a plan for a sale in the upcoming months, it is highly recommended to not "wait for Spring market" unless necessary to do so. The buyers are already out and ready to buy. We know what is now. With the Feds meeting again in February (these Fed meetings haven't been all together interest rate favorable lately), it seems a wait for Spring Market has enough of a likelihood to actually yield less buyers in the market than we have now. If there are school schedules involved with a desired wait for close until June, more favorable timing could mean the difference between two buyers. The subset of buyers out now that would prefer to close in June could be the ticket for those sellers.
There are a multitude of reasons why people move with transitions happening in any market condition throughout the year. If there is no reason to delay putting a property on the market other than green grass and leaves, reach out to me and let's discuss the reality of market conditions and your/your family specific situation to see whether it makes sense to move those plans up a bit.
Interested in positioning your home best for sale or what the current value is on your home? Contact me.