Why the Spring Real Estate Market Is So Busy – Spring is the number one time for buying and selling homes, why is that? One of the biggest reasons has to do with the weather being nicer. After all, who wants to worry about showings and moving in the cold winter months? Spring is also a great time to start the buying/selling process for families with children who are still in school because it gives them enough time to move and settle in before school starts back up in the fall. Here are a few other reasons for a busy spring market according to rismedia.com and realtor.com.
Millennials are ready to buy: Say goodbye to the Generation X population and hello to the Millennial population in the buyers market. Rental rates are increasingly on the rise, and as such, this sizable population represents a large portion of new homebuyers this spring. As reported by realtor.com, millennials make up about 65% of first time buyers. Additionally, the Millennials’ age range is currently 20-35, a prime time to buy a first home or purchase a bigger home to make room for growing families.
Fannie and Freddie are here to help: A new program by Fannie Mae and Freddie Mac is available to first-time homebuyers with a steady income and solid credit score. This program allows some new homebuyers to purchase with rate as low as 3% down, rather than the traditional 10% to 20% down payment. Likely Millennials and more are utilizing this accessible and affordable option to purchase their first homes this spring.
Interest rates will soon rise: Mortgage interest rates have been hovering near zero for the past five years, but things are about to change. In 2014, the Federal Reserve officially announced that federal fund interest rates, which directly affect mortgage rates, are likely to increase by the end of 2015. As a result, homebuyers are smart to take advantage of these low interest rates while they possibly can.
Foreclosures are falling: Foreclosure property numbers are diminishing after many years, the end result being that the composition of home sales is finally normalizing. Correspondingly, this leads to a decreased number of foreclosure and short sales in the market mix, resulting in improved sales for sellers overall.
If you're thinking of buying or selling this year, Spring is the best time to make your move. This is the time when most buyers and sellers will be coming on the market, which will give you the most options for either selling or buying a home.