Stay, Play, B.L.A. - a blog

[insert negative temps]   

WINTER IS HERE, BUT THAT DOESN'T MEAN YOUR GOALS OF HOMEOWNERSHIP HAVE TO BE PUT ON HOLD. OUR VERY own woods to water agent PAUL AUGUSTINACK ANSWERS A FEW COMMON QUESTIONS WHEN IT COMES TO THE WINTER HOUSING MARKET!

"Should I wait until Spring to buy?"

→ As long as you don't mind moving in the cold, the winter in our area is actually a great time to buy. Sellers selling during the winter often have a reason or some motivation to get a home sold, which can be leveraged to help negotiate. There are also normally fewer buyers shopping during the holidays and winter months. Fortune favors the brave in the case of moving through the winter. According to many local lenders, the pre-approval applications have slowed way down. This is beneficial for buyers that are pre-approved because the fewer buyers in the market creates less demand — so when sellers get an offer they may be more inclined to take a contingent offer or a lower offer. If it's possible, it is certainly worth your while to continue to hunt for a home through the winter!

"Interest rates are so high, should I wait until they come down to purchase a home?"

→ 2023 should be an interesting market as the Federal Reserve has decided to spike interest rates to combat inflation. For the past two years, we have had very little variation in the rates as the Fed cut the rate to practically nothing and pumped money into the economy to keep it moving throughout the pandemic. Should there be fear? At the end of the day, the simple answer is no. The real estate market has gone up and down for years and will continue for years to come. This only goes to show that trying to perfectly time the market is not the strongest plan, for either a buyer or a seller. As we move into the new year we are seeing houses sitting on the market for longer periods of time and more price reductions – indicating we have moved into a stronger buyer's market. Does that mean the strong seller's market we've seen in the past few years is done? No, people still need homes and houses are still going to certainly sell. The interest rates we are seeing today are closer to the national average of the last 30 years than in the previous two years. It could be a long time, if ever, that we see 2-3% interest rates again.

 "There's nothing on the market in the winter" 

→ Being in a tourist market, there are usually fewer homes being bought and sold through our winter season. However, our statistics are skewed due to the change in our population that is far larger from the summer compared to the winter. In the depths of our cold winter, there are certainly plenty of houses on the market and some of the best deals are found during the winter market. So even if you're goal isn't to buy until spring, contact your real estate agent and have a discussion of what you're looking for because it may come on while you're waiting!

Have more questions? Feel free to contact us. 

Stay warm out there!