Conventional wisdom says that holiday weekends may not be the best time for buying a home in the summer. However, there several reason why touring homes during this period may work to a homebuyer’s advantage. Because of the vastness of the Atlanta metropolitan area, there are homes for sale at any given time — including holiday weekends.
Here are three reasons why you should consider buying a home this Memorial Day weekend:
Competition for available inventory
The spring and summer months have historically been the busiest time of the year for home buying and selling activities. In fact, 40 percent of home sales occur between April and July. On top of the warmer weather bringing out more competition among buyers, this year an inventory shortage is playing more of a role in the market.
The National Association of Realtors reports that the average market has a significantly lower supply of houses for sale than is typically expected. Having fewer homes on the market increases the level of competition and also places upward pressure on home prices.
Looking for a home over a holiday weekend can work to your advantage because of the natural lull in buying and selling activities. There will be less competition for the available supply and a lower chance of multiple offers being submitted on a home that you decide to pursue.
Motivated sellers available during holidays
Prospective homebuyers represent a valuable commodity, especially for sellers who choose to show their properties during the holidays. They realize that anyone actively buying a home in the summer and on a holiday weekend has some degree of urgency to find a place. Conversely, the situation also works to the buyer’s advantage. If the Fulton County home has been listed on the market for several weeks, you may have more leverage to negotiate the price during a holiday weekend because the sellers know you are serious.
A serious buyer who has a genuine interest to buy a home in the summer and makes a reasonable offer stands a better chance of cutting a deal with motivated sellers and having the offer accepted.
Interest rate increase on the horizon
As of May 15, 2014, mortgage interest rates have retreated for 3 consecutive weeks to a six-month low of 4.20 percent. For people who must stretch their budget to buy a residence, buying a home in the summer rather than later may be a smart decision. This is especially true for first-time homebuyers who tend to have more sensitivity to home price affordability.
Interest rate increases are expected to occur in the next year. Take advantage of the warm weather and summer months to look for your new home before interest goes up. This Memorial Day, before you hit the grill, take a look for your new home.
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