When is the Best Time to Buy Real Estate in Florida
Surely you’ve heard stories of real estate investors who just seem to have the golden touch, right? Maybe you’ve seen any number of shows on cable TV where someone finds a real diamond-in-the-rough and makes thousands of dollars when fixing and flipping the property. And it happens every week, right? Same time, same channel. But that’s a bit misleading. While people can and do make money in real estate, most people just want to get the best price possible on the home they really want. Real estate investors play such a small part in residential home buying compared to those finding a home in which to live. But, is there a better time to buy real estate in Florida compared to others? Let’s look at that question a bit more deeply.
The unofficial “Home Buying Season” typically starts around spring and lasts to the end of summer when school starts back up. Families can look for a home when the kids are out of school providing an easier transition. Sellers know that and so do real estate agents. When there are more buyers out there, sellers can have more visitors and more opportunities to get the price they want for their home. When there are more homes on the market, buyers have more choices. But there is a balance that real estate agents pay attention to when pricing a home to sell or working with buyers to craft an offer.
Real estate markets refer to a term called “Days on Market” which counts the number of days a home is placed into the multiple listing system until it is sold and closed. When the days on market number is low, it indicates a sizzling real estate market. When the number is high, it indicates a slower market. When homes are really moving and multiple offers come in, sellers recognize the demand and price their homes accordingly. If the housing market is soft sellers can face lower offers than they truly want. When selling and buying are relatively equal, it’s referred to as equilibrium. For most markets, a 60-day days on market is considered the time frame where neither the buyer nor seller have the upper hand.
Okay, so if more homes are on the market during the summer time, isn’t that the best time to buy? Probably. There are more choices so that should figure into getting a better deal. But at the same time you’re competing with more buyers who can put some upward pressure on home prices overall. Some suggest for that very reason it’s a good idea to buy a home when there aren’t so many buyers in the market, say going into fall and winter. When sellers put a home on the market during the softer season they’re probably selling when they’d really rather not, typically because of a job transfer or other life event.
When is the perfect time, then? There are pros and cons for every time of the year but the best time is when you’re ready. There’s no reason to consult a calendar to find out if it’s a good time to buy. The perfect time is your time.