When to buy a home depends primarily on an individual buyer’s timeline. When the down payment is saved, when you get a new job, when that perfect house comes onto the market, etc. However there are times when buyers have other advantages and reasons to get a jump on the market. February is not only the month of Valentines love, it’s a great month to fall in love with a new home. Here are reasons to buy a home in February:
1. You’re out of the holiday fog
The holidays are a crazy time. Once everyone’s done with Christmas and the New Year, it’s back to business. That means more homes on the market (more choices for you) and sellers are more realistic and discerning with prices.
It’s not uncommon for the New Year to light of fire under some real estate butts and get sellers motivated. In fact, inventory historically spikes up in February because sellers who have been holding out the have a comfortable holiday at home are now ready to get on the market.
With the right goals and mindset, nothing can stop you from getting into a perfect home this year.
2. Get a jump on the spring madness
Spring is the busiest time in real estate. Buyers and sellers alike want to get their home lives sorted out over the summer so that come fall, their families are settled in. Take a look at the chart below and you’ll see the huge spike in homes for sale and a steady increase in sold properties in June and July.
Now take a closer look at the chart and you’ll see that February is when inventory and sales start their upward progression. The market is just starting to thaw out from winter but it’s not hot and heavy yet, crowded with competition like the late spring and summer. It’s this slight change that is a sweet spot for the buyer.
If you buy in February then you get in and out before the market is flooded with competition. In fact it’s best to start searching homes for sale now so you’re ready to buy next month.
3. This February is prime for buyers
Experts are saying 2015 is the year of the buyer. The economy made great strides toward improvement in 2014 including being the best year for total job growth since 2000. However the real estate market has still been lagging, and it’s up to the buyers to make a comeback. That’s why government agencies, mortgage companies and more are making home buying worth your while this February and all of 2015.
Homebuyers are getting the advantage this year thanks to low mortgage rates, prices leveling off, more low down payment mortgage options and the FHA lowering its annual insurance premiums by 0.5 percent, saving buyers thousands. It’s estimated that the FHA fee reduction in fact will price in 2 million renters and trade-up buyers.
This week mortgage rates dropped again, down to 3.73% for a 30-year fixed rate which is a record low for the past year. Prices across the county have seen gains however they’re done taking large strides, allowing affordability to play catch up. This combined with the new FHA guidelines mean you have a very important decision to make – are you ready to buy a home? Because the market is ready for you.
Thank you for reading. I hope you found this information useful.
Jeff Pittman, Realtor in Ladera Ranch – Orange County, California