When it comes to information about the local real estate market, timing is critical. Since this post was published major events have unfolded. In light of that, here is more information you should know if you are thinking about buying a home.
“Given that a home transaction is a major commitment, the uncertainties on how the economy will play out and the spread of the virus itself are barriers to home buying and selling,” says Lawrence Yun, NAR’s chief economist. “The stock market crash is no doubt raising economic anxieties, while the coronavirus brings fear of contact with strangers. At the same time, the dramatic fall in interest rates may induce some potential buyers to take advantage of the better affordability conditions. It is too early to assess the likely impact as to whether lower interest rates can overcome the economic and health anxieties.”
Framed with this updated information, we invite you to continue reading this article.
Let’s face it. Every time we turn around some real estate agent is shouting from the rooftops… “NOW is a great time to buy a home!”
It seems this same headline is in front of us All. The. Time. It makes no difference what time of year it is.
The question is this; are you to believe this statement? Is NOW the BEST time to buy a home?
Where Are Mortgage Interest Rates?
The average 30-year fixed-rate mortgage hit a record 3.25% this week! Economists are quoted daily saying that it’s never been more affordable time to buy a home!
While the Corona Virus and the recent drop in the stock market dominate the current news cycle, what you should know is this… mortgage rates are at an all-time low!
If you are remotely thinking about buying a home, and you have other compelling reasons to buy (see below), NOW “MIGHT” BE THE BEST TIME TO BUY!
Take a look at these headlines.
Homebuyers, it’s incredibly important you know this. Please don’t allow fear to paralyze you and prevent you from buying and owning your dream home!
Life Events That Move You
Let’s face it, sometimes you have to move and buy a new home due to a life event. In that case, it makes no difference what time of year it is.
Here are a few other compelling reasons why now “might” be the best time to buy a new home in Johnston County, NC.
Below are circumstances that may require you buy a home no matter the time of the year:
- Take a job in a new city and need to relocate
- The birth of a baby and you need more space
- Marriage (combining two households into one)
- A parent or an in-law comes to live with you
- A child returns home to live with you or all of your children have moved out
Need More Reasons? Stay tuned…
In a future post, I’ll discuss what’s happening in the new home construction supply chain that could make buying a home in the next 3-6 months even more expensive. Stay tuned!
Reasons to Sit Tight?
There could be many reasons to sit and wait. Sometimes buyers try to “time the market”. Timing the market could be based on “hoping” home values will go down or “wishing” interests will go down even lower. As you can see, these reasons are more based on “hopes and wishes”, and seldom based on known facts.
Where is the Home Supply Headed?
Because home values are impacted by the law of supply and demand, it’s a valid question to ask; will inventory go up or down? Yes, seasonality impacts inventory and typically speaking, the supply of homes does tend to go up in the Spring months. This gives a buyer more homes to choose from.
It is reasonable to expect that more homes will be for sale at the end of March and the beginning of April. Also remember, more buyers tend to get in the market in the Spring creating more competition for homes.
The Spring Market Actually Started in January
You may not know this but the “hot” Spring Johnston County real estate market actually started this past January. Homes sales in Johnston County have been record-setting for our team (and for other agents too)!
At the time of this post, the Jaclyn Smith Properties team has sold over 100 new and existing homes in Johnston and Wake County! Those are record-setting numbers for our team!
April 2nd – The Day the Most Homes Hit the Market!
As mentioned earlier, late March-early April is the time of year when more homes hit the Johnston County real estate market than any other time of the year. That date this year is expected to be April 2nd.
Why this Date in Particular?
Reason #1: The top day of the week to list a home live on the local multiple listing service (MLS) is on a Thursday afternoon. Buyers typically want to tour homes on the weekends so it’s important for agents to plan out which homes to tour starting Thursday evening/Friday morning.
Buyers also map out “Open Houses” for the weekend on a Thursday or a Friday.
To attract the most exposure for a new property on the market, agents make these homes live on the MLS on a Thursday.
Reason #2: It’s widely known, the traditional start of the Spring selling season is late March/early April. Historical statistics tell us the highest day/date for new homes hitting the market is on or around April 1 of each year. This year, that date is Thursday, April 2nd!
More Positive Indicators
As if you needed more reasons to buy a home now, take a look at this quote from Freddie Mac.
“Given these strong indicators in rates and sales, as well as recent increases in new construction, it’s clear the housing market continues to be a positive force for the broader economy.”Freddie Mac’s latest Primary Mortgage Market Survey March 6, 2020 8:58 AM ET
That means home appreciation rates in Johnston County should grow too.
Have Recent Events Caused You to Reconsider Buying a Home?
Leave us a comment and let us know if the recent events are preventing you from buying a home.
Still ready to jump feet-first into the market? Text or give us a call at (919) 813-0123!