According to a recent analysis by Zillow, the best time for buyers isn’t spring, but summer—the end of summer, that is. Why? There’s more supply as the season winds down, specifically in August, and sellers who weren’t so lucky earlier on become anxious to unload, cutting prices before the weather changes and the school year starts.
It’s a seller’s market out there, and for homebuyers, the struggle this spring is real: few affordable options, and price growth that just won’t quit.
For the month of April across the state of New Jersey the following sales were reported:
- Single Family Closed Sales were up 8.0 percent to 5,917.
- Townhouse-Condo Closed Sales were down 0.1 percent to 1,819.
- Adult Communities Closed Sales were up 7.9 percent to 549
Residential single family homes saw a 10% decrease in their average days on market before sale. Although inventory is still being stretched thin in many areas, relatively low mortgage rates coupled with higher wages have built a relatively sturdy housing marketplace. It is important for prospective buyers to remember that The Fed raised rates in March, and at the time telegraphed a plan to lift them two more times this year. Buying before the fall could mean capturing a much lower rate.
Buyers hoping to purchase in the summer are certainly in a battle for time overall.
“In such a competitive housing market, it’s easy for buyers to get frustrated when they are putting in multiple offers without success,” says Dr. Svenja Gudell, chief economist at Zillow. “Buyers who start their home search in the spring may still be looking months later—but for those who can wait it out, the end of summer will bring more favorable conditions. Homes that may have been overpriced earlier in the year are more likely to have a price reduction, and those listings passed over in earlier months may look better with a fresh perspective.”
Do you have kids in school? If so, you probably want to sell your house and move into a new one before the next school year starts. Moving over the summer lets kids finish the term at their old school, as well as explore the neighborhood and make friends before the first day at their new school.
Houses and neighborhoods often look their best in the summer, with lawns, flowers, gardens and trees in full bloom. You can see how well neighbors take care of their grounds, whether kids are playing outside, and how much the neighborhood socializes at barbecues, the local pool, and the like.