Why the Spring Real Estate Market Is So Busy – Spring has always been a busy time for real estate, but why is that? According to rismedia.com and realtor.com, there are a number of reasons for a busy spring real estate market, one of which is related to the warmer weather. People typically choose to buy or sell a home in the Spring because it puts them moving in a warm month, versus in the freezing cold winter months. Another reason for a busy Spring market revolves around the school year. Families with kids in school choose to move in the spring or summer so they can get settled before the next school year starts in the fall. Here are some of the other reasons for a busy market in the Spring:
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.
For all of these reasons Spring is the number one time to buy or sell your home. If you’re thinking of buying or selling this year, aim for springtime so you can take advantage of a market that is saturated with buyers and sellers.