The changes of seasons throughout the year mean different things to different people. One thing that may surprise you, however, is that seasonality actually effects the housing market. Real estate experts will lend advice about the supply and demand of homes throughout the country based upon the time of year. As such, it is important to be educated about the housing market as it relates to each season. For instance, the winter months in Illinois may pose a threat to the potential success of things like open houses and other real estate events. As we approach this year’s spring season, it is valuable to keep in mind some basic seasonal trends within the housing and real estate market.
In 2018 particularly, we have seen a record low supply of homes for sale. Many have attributed this low to things like rising mortgage rates and a declining supply of homes on the market. In addition, as more and more snow falls, the neighborhoods throughout the country are seeing less action. From a statistical standpoint, about 10 percent fewer homes are currently for sale compared to the numbers just a year ago. As such, home prices are increasing due to the fact that the number of homes for sale is declining. With mortgage rates at record lows last year, this year marks a time where mortgage rates are rising and continue to grow.
A competitive real estate market this spring will mean a decrease in home supply and an increase in home demand. Prospective sellers are likely to hold off on listing their homes in an effort to lock in those record low rates from last year. In addition to the supply and demand aspects of mortgage rates and number of homes for sale, the spring season is also a time where buyers with children may hold off on moving forward with a purchase. Moving in the middle of the school year is often not preferable for these buyers and they are likely to wait until the summer season to make an offer.
The Law Office of Brenda Murzyn, P.C. is highly experienced in all legal aspects of buying or selling residential real estate. Our firm regularly represent clients in a wide variety of transactions including the sale and/or purchase of single or multi-family dwellings, condominiums, and co-ops. We are here to help with home inspection, mortgage, and survey issues, loan processing, and title insurance. Most importantly, we attend all closings to guide you through the lengthy documents you are required to sign and ensure that your rights are protected.