Happy Valentine’s Day to All. And, what a fine intro that makes to this email on the cold, snowy winter and the spring housing market (see Reason 4 below for context).
So, here goes…I believe that due in a large part to this winter’s weather, the spring housing market will be extremely strong. The top 5 reasons (in no real order) are as follows:
1. After years of procrastinating due to both indecision and depressed housing prices, the “younger” senior citizens (i.e. those from 60-75 years old) will finally have had enough of the cold and snow. They will put their houses on the market in large numbers to either move to warmer climates or to maintenance free townhouses and apartments. No more large heating bills or snow shoveling for them!
2. After putting off buying a home for years due to lack of funds or the fear of another housing bubble, the Millenials, who have been living with their parents will having finally had enough of this togetherness after being cooped up too long in too little space during this winter. They will be ready to either buy an apartment, or depending on where they are looking to live, possibly a starter house.
3. Similarly, young married couples with either children or imminent plans for them, will realize that they cannot live much longer in the small apartments they either own or rent and will be ready to “trade-up” to a larger apartment or a house. Being cooped up in a small space with children (or even just a spouse) for long periods of time with too little to do, gets old fast!
4. We are in store for a huge, mini-baby boom in the Fall. As we all know, there are only 8-12 new episodes of Downton Abbey, Game of Thrones, Homeland, etc. and a limit on the number of re-runs of Seinfeld and Friends, you can watch. So, many of those Millenials, Generation X’s, etc. will likely be doing some “nesting” this winter. Therefore, by mid Spring (i.e. the second trimester), we should see a lot of motivated buyers looking for homes.
5. The cold winter has put a “damper” on the housing market outside of New York City. It is too cold to look for houses; impossible to see what the outside of the property looks like; and seller’s do not want lots of folks tramping through their homes with wet, muddy shoes. But, come March 1st or the first week of consistent 40+ degree weather, and the real estate agents’ phones will be ringing off the hook. People will be ready to put the cold weather behind them and engage in that other annual Spring rite of passage, buying a house!
With mortgage rates still in the low to mid 4s, and the above reasons indicating a strong spring housing market, I believe that this will be the best year since 2007 for buyers and sellers of residential real estate.