It has been a very slow summer in the real estate market.......not as many open house signs on the weekend, not a lot of listings which means not a lot of homes to show buyers.
WIth the beautiful weather we have enjoyed all summer long and barely any rain, more people are taking vacations and enjoying this season. Also, the economy has begun to recover -- especially from the 2008-2009 recession, resulting in people spending more money to take their families and friends on vacations.
Although the summer has been slow, and listings have stayed on the market longer, and it is beginning to look like its shifting to a buyers' market, predictions are still that prices will inch up ever so slightly. However, the bigger concern to me is what happens when the rates go up. I personally would be looking at locking in at a 5 or 10 year fixed term rate. The fixed rates are not that much higher then the variable rate, and once interest rates go up, it will be even more expensive to borrow money. If rates do go up, that's an indication that the economy is really recovering, chances are better for more job stablity, possible raises, but you are still paying the same low figure you locked into. My wife and I are currently looking at purchasing a home, and we are strongly considering and most likely going to proceed with a 10 year fixed mortgage term, that right now is around 3.99%.
So the summer may be slow because of the weather, or the uncertainty of the market; but as someone once told me, there is always a deal to be made in every market. Once the children go back to school and fall comes around, I believe we will see more listings on the market, more purchases, and activity pick up compared to this slow summer.