As demonstrated below, for a certain segment of the population the next six months may be the best time to buy a house. Over the coming year Michigan’s house prices are expected to rise between 4% and 5%. Applying this to a $150,000 house meansyou could potentially miss out on a $7,500 increase in value by delaying your purchase.
First, housing prices are driven by supply and demand. The larger the demand for housing the greater the pressure put on price. At any point in time there is a limited number of buyers in the marketplace. The housing stock available is also limited. Typically it takes six months to build a house so today’s housing inventory is fixed. This is especially true for a northern state like Michigan because of our severe winters.
Second, many families wishing to buy a home have school aged children and do not want to expose their kids to moving and enrolling in a different school in the middle of a school year. This causes undue anxiety on their children. School is stressful enough without the need to make new friends in a new location.
Third, some families must move and are willing to negotiate more than in the summer months. With fewer buyers they become more flexible on price.