Spring is widely known as the busiest time in the home buying calendar as the nicer weather draws more buyers out to property inspections, and drives more vendors to list their properties. But is spring really the best time for buying a home, or is it merely an industry myth?
It’s true that spring is often the most active time in the property market. Many real estate agents will advise sellers to hold off in listing their property over winter and wait until spring so that their properties look more attractive to buyers in the warmer weather.
For this reason, there is often an oversupply of houses over spring due to the rush of sellers suddenly flooding the market. This can sometimes work in the buyer’s favour, as the volume of sellers to buyers means there are a larger variety of homes to choose from.
However, the reverse can also be true as buyer numbers often swell in spring. The cold weather can deter buyers from shopping for a home in winter, while many prospective buyers may be planning to go on holidays for the summer months so will avoid buying a home during summer. That means that buyers are often at their most ‘serious’ during the spring season, when they have the time and inclination to adequately search for a property.
Of course, the number of buyers on the market will also be influenced by the current economic climate. In a low interest rate environment, demand for property usually increases as home loans become more affordable, while people will often put off their property investment plans when interest rates are high.
Heading into a spring property season where interest rates are at record lows, it is likely that the coming spring buying season will be quite competitive. This means it might be more difficult for buyers to negotiate a lower price for the home they want.
If you’re thinking of buying your next home soon, Choice Home Loans can help. Our experienced brokers will talk through your financial situation and goals with you, and find a loan to suit your needs. Make an appointment online to talk to one of our friendly staff today.