May 20, 2019
Fluctuating Home Prices
The prices of homes fluctuate regularly, but what causes these fluctuations. Well, it could be a number of factors from the time of year, the economy, and more. There are three main things to think about when determining costs.
Location, Location, Location
One of the major factors that determine the price of a home is its location. When there is high demand in an area, such as in cities, downtown areas, and popular suburbs, prices tend to be higher. In areas that are less popular or that are up-and-coming, prices are generally lower and you’re more likely to get a better deal even though a house might be the same size.
Time of Year
Believe it or not, the time of year makes a big difference in the price of homes. Springtime is usually the hot season for buying houses. Due to the demand for houses, sellers generally ask for higher prices based on the likelihood that the house will be bought. Prices can also go up during these times due to bidding wars. During the winter and fall, demand is lower and thus sellers are more likely to drop their prices or accept a lower offer.
This one might sound obvious but let’s look at why. When the economy is stable and trending upwards, people are generally more confident and feel more secure in their finances. Because of this, people might take on a larger mortgage under the assumption that the economy is looking good and they’re confident in their financial security, therefore, sellers will often be able to sell at higher prices. On the flip side, when the economy is not doing well, people are more cautious and conservative and therefore less willing to spend on houses, so prices will generally go down.
Regardless of where you’re looking to buy, what time of year it is, or how the economy seems to be doing, if you’re looking to buy your dream home, contact us at Method Mortgage. We’ll do our best to help you navigate the ins and outs of getting a mortgage and lead you the smart way home!