If you’re thinking of buying your first home in 2017, you may want to consider moving your purchase date up to avoid the Spring rush.
Realtor.com recently conducted a study of consumers intending to purchase a home during the next peak season. As Realtor Magazine identifies in their latest article, Big Expectations That’ll Drive Housing in 2017 , this Spring is predicted to be a tight market for buyers. Additionally, more than half of next year’s homebuyers are expected to be first-time homebuyers, competing for affordable starter homes. They cited interest in finding a home that provides safety, more living space and a larger yard.
According to the study, Millennials will comprise 61% of first-time buyers. This means that most prospective buyers will be under age 35. The main homeownership drivers mentioned by Millennials include getting married or moving in with a partner, getting tired of their current living space, or planning to increase their family size. The suburbs are cited as the most popular location.
In 2016, Millennials found low inventory and skyrocketing prices to be their biggest challenges. The biggest anticipated barriers for 2017 are mortgage qualification issues (such as down payments and credit scores) and affordability.
One thing the article does not mention is that home prices tend to take a seasonal dip in the late fall / early winter market. We’re seeing signs of that already.
Typically, most families wait until the Spring to buy so they can move into their home prior to the start of the new school year. As a result, there is a current window of opportunity for first-time buyers to purchase now, while they have less competition.
So, if you’re trying to time the market, now is a wonderful time to buy low, in advance of the anticipated seasonal price jump that happens every Spring.