Since I posted yesterday about the expected seasonal rise in listings for sale in Boston during the “Spring market”, buyers have been asking whether or not they should wait until spring to buy.
So…should you wait for more listings to come on market before you buy?
My answer here is a resounding NO.
Why?
Take a look at this picture of the 2012 Boston real estate market:
The BLUE columns measure the number NEW listings coming on market each month. The RED columns measures the number of listings going UNDER AGREEMENT (essentially being put under contract and going off market) each month. The PURPLE line is a measure of MONTHS OF INVENTORY on the market (ie. how long it would take for all listings to be sold at the current rate of market activity).
As you can see, while the number of new listings increases in the spring, so does buyer activity…pretty rapidly in fact. Last year the pace of buyer activity (listings going under agreement) soon overtook the number of new listings entering the market, rapidly in fact.
As you can see by the purple line, the months of inventory (which is actually the most important measure since it shows the supply of listing relative to buyer activity in a particular month) actually dropped to its lowest levels during the spring. So waiting for the spring market may actually reduce your relative selection since there is much more buyer competition in the market at that time.*
I’m not saying to rush in and buy a home you’re not happy with right now, but there’s absolutely no reason to wait for “more homes” to come on market if you find one you’re happy with. You can worry all day long that something “better” might come on market, but time and time again I’ve seen that not to be the case. Sometimes you’re just better off going against the grain and acting early.*
Here’s the same advice I gave yesterday. If you’re in the market now or thinking about buying a home soon, our best advice is:
- Be ready by learning how to buy in advance (like, now)
- Determine what you can afford
- Learn the local market trends
- Stay on top of new listings as they hit the market
- Buy with confidence
