Real estate can be filled with Clichés that people have been saying and believing for years. I want to examine some and see if they are still holding true in today’s market. I have addressed several in a previous blog post but there are so many I decided to check out a few more and see how they stack up. I want to see if these Clichés hold true and if they are important to keep in mind or if they are so “yesterday.”
What comes up must come down.
I often hear from clients that remember the great recession and they tell me that we will hit another recession and prices will drop again. I am going to look at some history to see if this one holds true. Our local Fort Collins Board of Realtors has been keeping records for over 45 years. They track appreciation, average price, how many sales we have each month and more. In the 45 years that they have been keeping records we have only had one year of depreciation. That one year was during the great recession. But the depreciation in real estate values that we experienced was less than one percent. So waiting for that moment does not make sense. This cliché is a myth in our market. This should be looked at for the market that you are buying in. Each market is different.
Spring is the best time to buy a home.
The best time to be in the market for a home is when you need to buy. That reason may be caused by a change in family make up or size. This can be because of a marriage, death, divorce, new baby, or a child moving home or parent coming to live with you. You may find that it is less expensive to buy than it is to rent. The best time to buy is when it makes sense for you. Is there a best time? Often in the spring is when buyers find that they have the best selection of homes. Buying in the spring you will have more homes to choose from, but also there will be more buyers looking. This level of activity in the market can carry over to summer. Buying in the fall you may have fewer buyers looking and for that reason alone you may find that sellers that are needing to sell are more willing to work with you. You may find that you can negotiate price and terms that are more suited for you. Buying in the winter often means that seller’s are working showings around holiday schedules and sellers can be less patient and just want to get it over with. So…is spring the best time, I do not think so. Remember, you should buy when it works best for you. Don’t wait until a certain time hoping for the best deal.