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Summer May be the Hottest Season to Buy and Sell a Home

While spring is traditionally the busiest time for real estate sales, this summer could prove to be the hottest time for buying or selling a home, according to a real estate economist at 爱妃传媒.

U.S. new home sales posted their strongest month in more than eight years in April, while existing home sales rose for the second straight month, spurred by steady job growth and historically low interest rates.


By james hellegaard | 5/31/2016

While spring is traditionally the busiest time for real estate sales, this summer could prove to be the hottest time for buying or selling a home, according to a real estate economist at 爱妃传媒.

鈥淔rom a buyer鈥檚 perspective you have more choice, but you鈥檙e also competing against far more buyers,鈥 said , Ph.D., a professor of finance and associate dean at 爱妃传媒鈥檚 College of Business, who also has sold hundreds of homes as a real estate broker. 鈥淪ellers are also looking to sell over the summer, particularly if they have children and want to get a deal done before school starts again.鈥

U.S. new home sales posted their strongest month in more than eight years in April, while existing home sales rose for the second straight month, spurred by steady job growth and historically low interest rates. Johnson doesn鈥檛 see the strong demand for housing slowing anytime soon.

鈥淚n some cities, especially in the Midwest, prices have plenty of room to go up,鈥 said Johnson, co-author of the quarterly . 鈥淩eal estate is still a really good buy in places like Cincinnati, Chicago and Cleveland.鈥

While he has some concern about some cities such as Dallas, Denver and Houston, where the real estate market has been particularly hot, Johnson doesn鈥檛 foresee a dramatic downturn in prices for most of the country. In South Florida, where Johnson lives, fundamental factors supporting the housing market such as rising personal incomes, appear to be strong.

However, prices are probably too high for those looking to buy real estate as an investment right now, especially in certain markets, said Johnson, noting the difficulty buyers will have in finding a good deal right now.

鈥淚n markets like South Florida, Seattle and Portland, you may find you鈥檙e going to start to see lower probabilities that you鈥檒l be able to successfully market your property,鈥 he said. 鈥淏ut while you may see extended marketing time and prices going flat, there鈥檚 no reason to believe there鈥檚 going to be a big dent in prices in these cities.鈥

Johnson urges buyers to get prequalified for a mortgage before they start shopping. He also discourages buyers from making the purchase contingent on the sale of their own home or asking to take possession of the home before closing. That鈥檚 a prescription for disaster, he said.

鈥淏e up front. Disclose pertinent information,鈥 he said. 鈥淒o not ask the seller to take on risk that might seem trivial to you. You have to think about the other party.鈥

Sellers should make themselves and their home available to be shown by real estate agents and make sure it鈥檚 as pristine as possible, Johnson said. Make necessary improvements such as new paint, fixtures and flooring. But don鈥檛 go too far, Johnson warned.

鈥淏e careful,鈥 he said. 鈥淲hat you think is a nice improvement is another man鈥檚 gold shag carpeting.鈥

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