How to Go with the Flow of the Market -- Tactics for Buyers
How to Go with the Flow of the Market — Tactics for Buyers
Buying a home can be confusing. That is why the tips and strategies you will find in our 7-week series will set you on the right path. It’s our own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.
Buying a home in the Pensacola Bay Area requires an understanding of not only the seasonal shifts in market activity but also the weekly flow of the market.
You’ll need to understand that there are two cycles – both a yearly one and weekly one when looking at homes. And you’ll need to be prepared and know what to expect for each one.
One simple way to explain these cycles is with a surfing metaphor: It’s like knowing the best time of day to catch the best waves or whether to wear a wetsuit at certain times of the year. Same concept for Buyers!
Just like a surfer hitting the waves, you start to know what to expect and know what time you need to be out there to get the best outcome. It is a huge lesson for Buyers to know that they will need to adapt and be flexible.
Go With The Flow
I can’t emphasize enough that you will be a successful (and less stressed) Buyer if you know how to respond to the cyclical flow of the market -- both seasonal and weekly.
Our secret tips below will help you understand why timing can affect how you go about looking for a home:
The Weekly Inventory Cycle
Homes tend to come on the market toward the end of the week. As the weekend approaches, Buyers tend to have more time to devote to their home search.
That means you have to get organized Thursday or Friday to know what homes you are going to see over the next few days. Depending on the neighborhood you are looking in, homes will either go for “speed” or go for “the money.”
What that means is, depending on where you are looking, Sellers either tend to take offers quickly OR they set deadlines after the weekend to give as many Buyers a chance to see their home, hoping to get multiple offers and/or more favorable contract terms.
If you see a home you like, reach out to your Mark Lee Team agent and flag the listing so we can reach out to the Seller’s agent and see if you need to rush out to see it ASAP and go for speed, or if you can take your time and have a set deadline to tour the home, typically for early the following week.
There are exceptions to this rule of course, but typically, this is how the weekly cycle of new listings works.
Keep in mind that the inventory of homes for sale changes weekly, and depending on the time of year it can be drastic. Once you’ve become serious about buying a home, you really need to be out there touring homes on a regular basis in order to see what has come on the market each and every week. And again, have a strategy in place for “speed” or “the money.”
The Yearly Inventory Cycle
Here’s a breakdown of what to expect during the year:
Inventory (the number of homes on the market) in the Pensacola Bay Area has a yearly cycle that looks like a bell curve with the low periods in November and December, and the height of the inventory peaking May through June.
Suburban homes follow the school calendar and tend to become available in April/May/June. Not as many suburban homes come on the market at other times during the year.
The overall market slows down toward the end of July through August and tends to picks up right after Labor Day.
What’s this all mean for you?
Go with the flow! If you are starting your search in November, December or August, be prepared that there won’t be that many homes on the market to see. If you can be patient and wait it out until April, May or June, you tend to have more options to choose from.
That is why it’s important to not get frustrated or give up on your dream to own a home if it is simply timing that’s not on your side.
There are exceptions to every rule, of course, so if you want to know what to expect for your own home search, get in touch with our team and we will help you through it all. It’s not one-size-fits-all and there are not hard rules, just trends to keep in mind.
Let me know what you are looking for and where in the Pensacola Bay Area you would like to live. We can get you started on your search and help you fine-tune it to your needs and budget. That way you’ll know what to expect and avoid any anxiety about your search.
Next up in our Secrets Every Home Buyer Should Know series is a must-read – What NEVER to Do Before Buying a Home. These tips will save you a lot of heartache!