The Impact of Good Weather on the Housing Market
After a long winter of frigid weather and heavy snowfall, particularly in the northeast, spring is finally here. Spring is a very busy season for the housing market, as more people put their homes on the market and more consumers are out looking to buy.
Consumers are less likely to buy or sell a home when there is severe weather. Housing sales typically drop in the winter and rise again during periods when there is nicer weather. Consumers are less inclined to go out looking at houses when it’s terribly cold and snowy. This also applies to the other end of the spectrum when the weather is extremely hot and dry.
According to a recent report from the National Association of Realtors, the housing market declined in February. The main reason for this decline was the snowy weather, which is why the Northeast and Midwest regions saw the biggest drop, in comparison to the South and West regions where cold and snowy weather was less of a factor. However, though the snow led to a decrease in outdoor construction, the requests for housing permits increased in February to get new homes ready for the spring housing market.
With the nicer weather approaching, spring is the best time of the year for homeowners to put their houses on the market. In contrast, winter is considered the best time to purchase a house because buyers see less competition and are more likely to close a deal at a lower price. For sellers, however, spring is a better season because people receive their tax refund checks and are more likely to pay full price. During the colder months, with fewer people looking for real estate, homes tend to remain on the market longer. Buyers who see that a house has been on the market for a long time tend to become skeptical of purchasing it, as well.
So, if you are looking to sell your home, the best time do it is in the spring. If you are selling your house in order to upgrade to a bigger or nicer place, but cannot find a borrower with the right criteria that traditional banks are looking for, you should consider seller-financing your home and creating a mortgage note. Many financial firms on the secondary market are buying mortgage notes, and when the housing market is hot, you can receive a better return on your mortgage note investment.