When to Start the Home Buying Process
How the current market is affecting the process:
Low new construction levels
Covid
Desirability
What this means for you
Watch the video to get the full breakdown
One of the questions that we get asked pretty frequently is, “When should I start looking for a home to buy?” It seems simple enough on its face to answer, but once you start thinking about all the steps in the home buying process and the time it takes to complete those steps, you could be in over your head before you’ve even started.
To be frank, this question was incredibly easy to answer just a few years ago. We would meet with a client, they would go over their needs and wants, and we could go out that day and show them some homes that fit their criteria. They would be able to put an offer in on one of those homes, it would get accepted, and they could move in after a 30-day close. That is no longer the case.
We said it before, and we’ll say it again — record low inventory over the past 15 months and the fast turnover of available inventory is driving all the competition and long waits to buy a home in Snohomish County.
Why is Home Inventory in Snohomish County Low?
Low New Construction Levels
There are a number of dynamics playing into the inventory staying so low. One of them is record low new construction. This isn’t a new thing. If you look at construction levels compared to increasing population and demand, new home construction has not picked up in pace since 2008 when the real estate market crashed.
Over time, the effect of the low levels of new construction have only compounded. The overwhelming majority of buyers are purchasing resale or investment properties due to the lack of availability for new construction.
Covid
Covid has created an interesting work/life dynamic from the perspective of how buyers are considering the criteria for their next home. Covid has created a situation in which a large number of the working population converted to telecommuting, which means they need a space conducive to working as effectively as one would if they were in an office.
But it isn’t just a work-from-home consideration. Children’s schooling also became remote, so between work and education, many buyers are looking for a home that has a space that can be separated from the rest of the house and dedicated specifically to these work and education needs.
Finally, Covid has created a mentality of “staycations” instead of traveling. So, buyers are looking for homes a little further outside of metro areas, homes closer to outdoor activity locations, and homes with larger lots for outdoor lounging and activities. With those motivations in mind, it explains why we’ve been seeing a drop in inventory further outside of those metro areas.
Desirability
Lastly, we live in a very desirable area in Snohomish County. This area has the unique appeal of being very close to a number of outdoor activities while still having plenty of amenities and retaining that quaint community feel. In addition to that, more and more jobs are developing further outside Seattle and the East Side, and it’s making it easier for buyers to look further out than they traditionally have.
What Does This Mean for Your Home Search?
Right now we’re recommending to our clients that they should consider the home search taking at least 6 months. The last thing we want happening is for you, the buyer, to feel rushed due to a short search period and feel obligated to put in an offer on a home you’re not truly in love with. You really want to build a safe amount of time for your search, and if you’re considering buying in June of this year, you should really start the process right now. Get that buyer consultation with your agent right now knowing that the actual search phase could take 3 or 4 months, and that’s before you add in a 30-day close. We’re also seeing 5-8 offers per property, so it’s very likely that you will need to put offers in on multiple properties before you have mutual acceptance.
If you’d like to talk more about what you can do to prepare for your home search, contact us below!
Are you ready to take the next steps toward buying or selling your home?
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