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Homebuyer confidence rises in fourth quarter 2013

Home Buyers  \  December 16, 2013 12:17 pm

Homebuyer confidence rises in fourth quarter

For the first time this year, homebuyer confidence rose, according to a recent report by Redfin. The pickup is likely due to a buyer advantage that many experience later in the year.

During the winter months, home sales typically slow down as fewer properties are listed on the market. Most real estate transactions usually happen during seasonal selling in the spring and summer.

Families prefer to move during this time period before a new school year starts, and most sellers believe their home will show better in the warmer months.

"With fewer people shopping for homes as the holidays approach, buyers that remain in the market are enjoying greater negotiating power  and lower competition than they have seen all year," said Ellen Haberle, an economist with Redfin.

As the fourth quarter of 2013 is coming to a close, the housing market has not experienced the same slowdown that is typical for the winter. The Redfin report revealed  that homebuyers in the winter are more serious about finding a new home. With fewer buyers looking, there is more opportunity and less competition.

Another reason buyers may feel more confident is that mortgage rates have remained around 4.5 percent, an affordable rate for many Americans.

 

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