This fall is flying by and before you know it winter will be here. Despite Jon Snow’s dire predictions of what the season brings this one might be something to look forward to.
Normally, as temperatures cool down we expect the real estate market to do the same. It’s typical to see things slow down as holidays come and go and the weather dissuades potential buyers from traipsing outside in the freezing cold, slush, and snow. Don’t get left behind expecting this year to keep to the status quo. Those with industry expertise are wagering that things to go a little differently this winter. How much of a gamble is it? Well if you pay attention to certain indicators and make your move, you might be ahead of the game come spring when everyone else is scrambling to make the most of the next six months.
What makes this year different? Let’s take a look at three major indicators that tell us how the market could behave.
- Home Prices Continue to Increase
The low inventory in the housing market that we have been experiencing and increased demand have held the market steady in the seller’s corner. Because construction cycles are dependent upon the weather, new construction is not likely to budge the needle until sometime next summer. We’ve seen home prices increase 6.5% over the past year, and while the forward-looking rise is more modest at an estimated 3% this may motivate sellers to take advantage of a hungry market.
- Impending Interest Rate Increases
While watching the Federal Reserve might be more frustrating than 10,000 spoons when all you need is a knife (it’s not irony, Alanis), those in the know are expecting an increase in the near future. When homeownership costs rise, it can put some buyers out of the running. Don’t discount those who are paying attention, though, and want to get ahead of the Fed. This will factor into how the winter market behaves.
- Summer Buyers Haven’t Closed Yet
This is another effect of a low-inventory market. The average buyer is out on the market for far longer when there is a shortage of homes on the market. That means those homebuyers who did not find a home this summer and fall will be out hunting this winter, bolstering the numbers for the season.
While winter will likely remain cooler than summer in more ways than one, the forecast for this year is to be pleasantly mild. Just one of these indicators on its own may have not been enough to make a difference to the market, the combination of the three has this winter looking like it will shape up to be a great time for those who are looking to sell their home. Personally, I think all of those cheery holiday decorations can’t hurt either.
Looking to sell your home? Give me a call and I may just surprise you with what I think we could list it for. (508) 317-0201 Or, fill out the form below and I will call you in one business day.