Why You Should Move Before the Busy Spring Market in Philly
Spring is typically the peak season for the housing market in Philadelphia, with a surge of buyers entering the market in search of their dream home. However, if you're ready to buy a home, it's worth considering making your move before the spring market takes off. By acting now, you'll have less competition from other buyers, and sellers may be more willing to negotiate on price and other terms.
A Record High Number of Sellers Offered Concessions in Q4 2022
According to a recent report from Redfin, home sellers gave concessions to buyers in about 42% of home sales in the fourth quarter. That’s up 31% from a year earlier and it’s a record high for any three-month period in recent years of Redin’s records dating back to July 2020. In Philadelphia specifically, 22% of home sales included seller concessions in Q4 2022.
Sellers may be more willing to offer concessions during the slower season as a way to attract buyers. These concessions can include closing cost assistance, home repairs or mortgage buy-downs. Closing cost assistance can help buyers with the expenses associated with purchasing a home, such as closing fees, title insurance, and appraisal fees. This can be a significant financial benefit for buyers and can make a home more affordable. Home repairs can also be a valuable concession for buyers. Sellers may be willing to make repairs or improvements to a home before closing to make it more attractive to buyers. This can include fixing leaky faucets, repainting, or even updating appliances. Mortgage buy-downs have also become a common concession as of late, which is an assistance provided by a seller to a buyer to lower the buyer's monthly mortgage payments. It is achieved by the seller paying a portion of the mortgage interest rate upfront, which reduces the rate for a certain period of time, usually the first years of the loan. Offering these concessions can be especially beneficial for sellers during the slower season when demand for homes is lower. With fewer buyers in the market, sellers may be more willing to negotiate on price and terms in order to make a sale.
Less Competition with Other Buyers
The current housing market presents a unique opportunity for buyers who are ready to make a purchase. Due to a combination of seasonal trends and last year's rise in mortgage rates, buyer demand is currently low. However, rates have started to decrease since November, and more potential buyers are starting to consider entering the market. This means that right now is a prime time to buy, before demand picks up again. It's worth noting that the mortgage rates have dropped since their peak in late last year, which is going to increase the number of buyers in the market. This makes now a good time to act, before the competition increases. If you're in a good position to buy, now is the time to take advantage of the low demand, seller concessions and favorable affordability before the market picks up again. If you are interested in connecting with a real estate professional to talk about your real estate goals this year, reach out to us at the Venture Philly Group, we are happy to help!