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Murrieta Real Estate and Market Timing

No matter when you decide to buy a Murrieta home, the market will be in some state of flux. Sometimes it is a sellers' market, which is advantageous to the owner trying to sell, and sometimes it is a buyers' market, which means the buyer has a better chance to negotiate a good deal.

The fluctuation of the market depends on economic factors, such as current interest rates, local employment and the national economy. Interest rates, in particular, affect what kind of market you may encounter: high rates can flatten demand because few buyers can afford to buy when rates are high. Conversely, low rates stimulate sales because most Murrieta home buyers find the lower cost of borrowing money more affordable.

When there is a relative balance of buyers and sellers in the market, Murrieta home sales prices will be driven by economic factors. When there are few homes on the market to sell and many buyers who want to buy, it is a sellers' market: the seller can set a high price, and the buyer may have to act quickly to get the home. In this type of market, buyers should get prequalified and should not expect to submit a contract with a lot of contingencies.

In a sellers' market, Murrieta real estate is not on the market for long. In fact, sales are generally so good that many Murrieta homes may sell before they are even listed. One woman, for example, prepared to list her home after the death of her husband. By the time she had finished the paperwork with the Murrieta real estate agency, an agency employee had made an acceptable offer for the house. On the other hand, in a sellers' market, Murrieta real estate agencies may not even become involved because many sellers will sell their homes themselves.

When there are many Murrieta homes on the market and only a few buyers who can afford to buy, it is a buyers' market: the buyer has a large selection of homes to view, and sellers may be forced to lower their prices to make a sale.

The Murrieta real estate market will determine how much you will pay for a home. If you can wait for a buyers' market, you may get the home you want at a good price. However, if you must buy during a sellers' market, it likely will take more time to find an affordable home that you like.

Other Timing Considerations

As a rule, Murrieta home sales increase when the economy is good and a high percentage of people are employed. Within this framework, the Murrieta real estate market goes through certain cycles. Many buyers start looking, and many sellers put their houses on the market in the spring because the school year is about to end and job changes often occur. In fact, approximately 40 percent of home sales occur in the late spring and early summer.

In the fall and winter, home prices tend to be lower in many parts of the country because of uncertain weather and travel conditions as well as the time and financial commitments of the holidays. The worst selling week of the year is typically the week between December 25th and January 1st. In warm weather areas such as Murrieta, however, the market is generally more active during the fall and winter when temperatures are lower and more people are visiting these areas while on vacation.

You may want to do your Murrieta house hunting in the off-season. You might find a Murrieta home at a lower price than if you bought it in the spring when everyone else is looking to buy. But remember, while there will be fewer shoppers to compete against, there also will be fewer Murrieta homes on the market. Late summer may be the ideal time for a buyer to shop. The peak months of April, May and June are over, and bargains may appear while competition for homes may diminish. In addition, families who are timing their moves based on the school year may be eager to sell in August.

Another timing issue to consider is whether you will have more funds to buy a Murrieta home during a certain time of year. In the spring, you may receive a large refund from your income taxes that can be used for a down payment. During the holidays, you may incur substantial expenses and have less money to spend on a house.

However, buying early in the year will allow you to get a full 12 months of interest payment deductions to offset your taxable income.

Buying a New Home in a New Development

Seasonal factors have little impact when you are considering a new Murrieta home in a new development. Timing remains important but for different reasons.

Purchasing a Murrieta real estate during the preconstruction period has advantages:

• Preconstruction sales allow you to take advantage of the lowest prices. Builders will increase prices over time and may raise prices numerous times between the opening and closing of a development.
• The Murrieta home will have built-in appreciation. For example, if the price of a certain home design goes up $10,000 from the time the builder sells the ?rst one to the time the last one is sold, the market value of the ?rst home presumably would increase by $10,000 from the raise in price alone.
• You may be in a position to select from the best Murrieta home sites during the preconstruction phase. However, this is not always guaranteed, and at this stage, you may not know what ultimately will be the best choice.

However, buying Murrieta real estate after the preconstruction stage also has advantages:

• You may be able to make a more informed decision about the site once all phases of the development are open and you can see exactly how the homes are situated.
• You can tour model homes and select the design that meets your needs rather than buy a home by looking at blueprints.
• You will move into a more established neighborhood with sidewalks, streetlights, parks and other facilities.
• You will miss the inconvenience of construction noise, dirt and traf?c. The earlier you buy, the longer you have to tolerate it.
• During the ?nal, or closeout, period of the development, the builder may offer substantial price savings to sell the remaining homes. To hasten the completion of the development, many builders also save the best sites for this sales push.

When buying Murrieta real estate in a new development, your timing is based entirely on your own preferences and needs. There are advantages and disadvantages to purchasing before, during and after the building stage. You have to decide how your situation coincides with the development's timetable.

If you need any information on Murrieta Real Estate or Property please check our Murrieta Homes section on this website or contact us at any time.