Coming Up… Spring
Many mistaken the Summer Market as the busiest time of the year for housing, yet it is the Spring Market that is home to the most real estate activity year in and year out.
More homes come on the market during the spring than any other time of the year and demand reaches a peak. Spring is just around the corner. The days are growing longer, temperatures are slowly rising, trees that had lost their leaves are blanketed with new buds about to burst to life. Spring officially begins on Saturday, March 20th, and it is also the start to housing’s Spring Market, the busiest time of the year for housing.
More homes are placed into escrow during the Spring Market than any other time of year. That is when the FOR-SALE sign is adorned with a smaller “SOLD” sign, letting the world know the home is no longer available to purchase. Many mistaken the Summer Market as the busiest season for real estate, but it is simply not true. Most families prefer to move when the kids are either out of, or about to get out of, school, between May and July. To accommodate that goal, they need to close escrow during those months. That means that they must come on the market during the spring, pound in that FOR-SALE sign, and open their home to potential buyers from March through June. The intention, of course, is to place their home into escrow as quickly as possible. It typically takes between 30 to 45 days to close escrow. A home is placed into pending status, the SOLD sign is installed, and an escrow is opened when a buyer and seller agree upon the price and terms of a contract. An escrow is when the home inspection take place, an appraiser comes out and appraises the property, home disclosures and a truck load of other documents go back and forth for signatures, the loan is put together, and money exchanges hands. All this occurs prior to closing when the buyer is finally able to move into the home.
The demanding escrow process takes time to complete. A home must come on the market, be exposed to buyers, open escrow, and close to complete the goal of selling and moving. This can take anywhere from a couple to several months. If families want to move while the kids are out of school, that means coming on during the spring. For Orange County, on average, more homes come on the market in May, the middle of spring, than any other month of the year. The number of homeowners coming on the market is heightened from March through July. That would enable families to move from May through August, prior to the kids going back to school. Real estate seasons center around the family and what is best for their children.
Excerpt taken from an article by Steven Thomas.