For Buyers Entering the Spring Home Purchase Market, the Early Bird Catches the Worm.

Dear Friends & 2018 Home Buyers,

The question is:  When is the best time to be a “Buyer?” Is it, now… as in mid January, not even half way through Winter, not even long after the Holiday season has passed?  Or, when we often hear many say, “I’m/ We’re going to wait for spring”?

Even though we have no data to support industry wide trends, from our vantage point, we can tell you that we are much busier, serving many more first time home buyers, when they were not able to do so in the spring of 2017. Speaking strictly from a percentage standpoint, it is safe to conclude that many more first time buyers have been successful in getting their offers accepted this month, compared to the red hot SELLER’S market we experienced this past March & June.

Although in the Spring of 2017, the housing market may have been the most extreme case, it was not an anomaly in my opinion. The 2016 spring market had limited supply as well, and my guess is that we will see something similar again for 2018. In 30+ years of working with first time home buyers, I am convinced that the largest demand for homes is in the Spring market (March through June). My personal theory is that the Spring market sets new prices, and the rest of the year falls into place based on those new prices. In many years prior to 2016, getting offers accepted for first time home buyers was not as much of a problem. Before 2016, the Spring time supply of homes increased relatively in unison, with the increased spring time demand for homes.  This normal increase in Spring supply for the inventory of homes was not so much for 2016 market, and definitely not true in the 2017 market. Many predictions are that it may be a tight supply again for 2018.

As a mortgage lender who has always specialized in working with first time home buyer’s, I will agree that the spring market of 2017 was brutal for many first time home buyers who were working with low down payment programs. At times, it seemed that offer after offer, would get rejected in favor of a 20% down buyer, or a cash buyer. From our vantage point, the tide didn’t seem to change until last summer, after the market seemed to soften a bit for buyers. For first time home buyers, the best way to overcome this challenge for 2018 is to have a solid pre-approval in place, and to perhaps, to beat the influx of buyers who will compete for homes in March, April, May & June.

You just may beat the rush of competition for housing if you are ready to start the process in January.  As the cliche goes, “the early bird catches the worm.”  And in this context, the early bird is the home buyer who is active, and pre-approved prior to the spring market hitting. A follow up, is often recommended so that we may fully explain your loan options, loan terms and the mortgage process. I promise to be personally at your side with answers and solutions to your housing needs.

Also, if you know of someone who is looking to get into the housing market this coming year, please pass my name and contact information along. We greatly appreciate your referrals as our source of business!  Thank you for everything.

~Naomi Schroeder, Mortgage Lender

Phone: 877-906-4480

Email: naomi@polarishfc.com