What is the best / worst time to buy or sell a home?

Minneapolis, MN: As a Mortgage Loan Officer for well over 20-years, I get asked on a pretty regular basis about what is the best time of year to buy or sell a home. As many buyers are also sellers, it also makes sense the question can be changed into what is the worst time to buy or sell a home?

My general answer is the best time to sell a home is simply when you need to, and the best time to buy a home is also when you need to.

But if you’ve got time on your side, the following statistics apply to the seasonal trends in real estate for properties here in Minnesota, Wisconsin, and South Dakota, where I lend.

Best time to sell a home, best time to buy a home
Best Time to Sell a Home
Worst Time to Buy a Home

BEST MONTH TO SELL A HOME

April is historically the best month to sell a home in these area. This is the month where you will generally get top dollar as the most buyers are in the market, and willing to pay to get what they want.

As more homes come on the market from the winter sales lows, we see a steady rise in sales prices as we move into February, and March, hitting the peak sales price in April.

May and June drop a little from Aprils peak, but then we see a steady drop each month as we move towards winter.

BEST MONTH TO BUY A HOME

Want to pay the lowest for a home? Buy in November or December.

This is the slowest sales time of the year. The smallest numbers of homes are on the market, and the smallest number of buyers are in the market. This works on your behalf, as sellers tend to start lower, and are more willing to negotiate price.

Starting in July, we see a noticeable drop in the number of active buyers, and homes stay on the market a bit longer. January is the first month that changes the trend, but it really starts moving up in February. I generally see a huge sure in Mortgage Loan Pre-Approvals starting around February 1st.

WHY THE TRENDS?

There are all sorts of reasons for these yearly trends. Here are just a few:

November and December have the holidays. Thanksgiving dinners, and Christmas trees are great family times, but are not so much fun for sellers to have strangers coming through your house. Holiday’s also have so many other things going on, that buyers find it hard to find time to look at homes.

In the winder months, it’s cold outside. Homes and yards are covered in snow. Not so fun house shopping, unless you absolutely need to.

Spring brings people out in droves as the snow melts, and the weather warms, but increased sales has a lot more to do with kids. No one likes changing schools mid-year, so the big push is on this time of year to buy or sell to coordinate with the school year.

July and August fall off, as those are usually busy summer vacation months.

REAL DOLLARS vs MYTH

While these trends can be interesting and can work to your advantage, I still default to the statement that you should simply buy or sell a home when you need to, and not hold out for seasonal trends. Statistics for the Minneapolis / St Paul area in 2018 show on an average $300,000 home had a swing of just $10,241 from a transaction in April versus a transaction in December.


Looking to get Pre-Approved for financing that new dream home? It only takes 10-15 minutes to apply online right now. All the information needed to apply is in your head.

Click to apply online

Equal Housing Lender. NMLS274132. Not an offer to enter into an interest rate lock agreement. Not everyone will qualify.


Get Pre-Approved Before You Start Looking

Get Pre-Approved Before You Start Looking for a home

Minneapolis, MN: People often make the mistake of starting a home search without knowing what they actually qualify for. Falling in love with a $400,000 home and finding out you qualify for $200,000 can be heartbreaking. Thinking a loan approval will be easy, only to find out you have issues, or don’t qualify for a program you think you do, is another concern.

Virtually no Realtor will show homes to clients who have not been pre-approved, and virtually no seller will accept any offer without a pre-approval letter for this very reason. Being pre-approved gives both you and the seller comfort that final approval for your loan should be fine.

Pre-approval gives you, your agent, and the sellers confidence in knowing can get a loan, and that you are shopping in the correct price range for your income and payment comfort level.

We recommend getting lender pre-approved about 100 days before you would like to move. For example 100 days before the end of your apartment lease. This give you plenty of time to correct any minor issues that may cause loan approval issues, and plenty of time to find a home without just settling because of time concerns.

Finally, understand there are two levels of pre-approval. The more common one is what is known as Loan Officer pre-approval. This is where only your Loan Officer has reviewed your application information, documents, and credit. Generally this is acceptable in the vast majority of cases, but can be problematic when new or inexperienced Loan Officers make mistakes in their assessment.

Certified Underwriter Pre-Approved from Mortgages Unlimited, Inc
Certified Underwriter Pre-Approved from Mortgages Unlimited, Inc

Mortgages Unlimited goes a step beyond, and also offers full Underwriter Pre-approvals, known as our Certified Pre-Approval. This means your application has been completely reviewed by an actual Underwriter, who has given their blessing on your credit, incomes, etc.  This only leaves us to have to finalize your application on the exact home when you find it (purchase agreement, appraisal, and title review).

Certified Pre-Approval  is significantly better than a basic pre-approval, and gives you a distinct upper hand when negotiating on your dream home – especially if you are in a multiple offer situation.

To become pre-approved for a home loan on properties in Minnesota, Wisconsin, or South Dakota, please fill out our secure online application, or call (651) 552-3681 to apply over the phone, or to schedule an in-office appointment.

Get pre-Approved for your home mortgage loan in Minnesota, Wisconsin, South Dakota
No Obligation to apply, and see what YOU qualify for.

 







Top 100 Loan Officer 2015

Minneapolis, MN: Maple Grove, MN based Mortgages Unlimited’s Loan Officer Joe Metzler, out of their St. Paul, MN Office, has been recognized as one of the Top 100 Loan Officers in the Nation by Origination News, coming in at number 98. Read the list at http://tinyurl.com/ljqqkbj

Top Loan Officers 2015This is another is an ongoing set of accomplishments for Mr. Metzler, as he was also recently named the Minnesota Mortgage Associations 2014 Loan Officer of the Year.  Joe Metzler has been a top producing Loan Officer for Mortgages Unlimited since 2000, and has over 20-years industry experience.  Joe has received other awards in recent years in recognition of his outstanding service and dedication to the mortgage industry, including:
  • 2011 – Top 40 Most Influential Mortgage Professions to Watch (NMPM)
  • 2010 – Top 150 Loan Officers in the Nation by Dollar Volume (Origination News)

Joe Metzler is a certified MMS (Minnesota Mortgage Specialist). Less than 1% of Mortgage Loan Officers in Minnesota have completed the requirements to earn this designation. This is just one of many ways that shows Joe’s dedication to his career.  His track record is exceptional by any standard. He believes in doing the job right the first time and providing a service you can depend on.

If you’d like to have Joe as your Loan Officer, he is licensed in MN, WI, and SD. He can be reached at (651) 552-3681, or you can apply on his web site, iMortgageJoe.com.







Fed Rule on Compensation – The insanity explained

CONSUMERS: The Federal Reserve just made loans more expensive…

The Federal Reserve Bank (which is NOT a government agency, but a PRIVATE BANK) was able to convince the Courts to allow their asinine sweeping new lender rules to take effect (April 5th) while the case winds it’s way through the court system. Below is simple video from TBWS Daily which puts the rule into perspective.

Buying bananas, or buying a home… Consumers don’t care what the seller makes, they just care that they shopped, and got the best possible deal in the market. But take away competition (can your hear me Washington?), and everyone suffers.  In July, the Dodd/Frank Financial Reform law will come into play making mortgages even more expensive and costly to consumers with even less options, except going to the overpriced banks!


What are your thoughts?