HOUSTON — For most people who are considering a move, moving in the summer simply makes sense.
Why do so many people move when it's hot outside? We spoke with the travel experts to find out.
For centuries, Americans have packed all their belongings in search of a better life, and in 2024, Americans are still on the move. The summer is peak moving season and that keeps moving companies busy.
According to U-Haul, more than half of all moves in the country happen between Memorial Day and Labor Day weekends and there are several reasons for that.
Summer is peak selling season for homeowners and kids are out of school, which gives parents more flexibility in their schedules to move. Also, the weather is usually better during the summer, leaving fewer chances for delays.
U-Haul crunched the numbers, and a lot of people want to find out if everything really is bigger in Texas, because more one-way moves arrive in Texas than any other state. More than half of all major moves end in the Lone Star state.
Florida came in at number 2, followed by North Carolina to round out the top 3 growth states.
Another perk about moving in the summer, is that there’s more daylight.
How to compete in the housing market
As we head into summer, people may be looking to move before the new school year or to live closer to work. So, that hot Houston weather may also mean a hot housing market.
“Today our inventory is very, very light as well,” said Amy Bernstein, Houston realtor, and broker with Bernstein Realty. “One of the situations is that with interest rates rising, a lot of people who purchased homes with the lower interest rates don’t really want to move.”
With decades of experience on the Houston housing scene, Bernstein says right now, the competition is fierce.
“All-cash offers are really plentiful today,” she said.
Most buyers don’t have that kind of cash so here are Bernstein’s top three tips to complete with cash offers.
- Get pre-approved
- Make an offer on a home, without any contingencies on the financing
- Make an offer, with no contingencies on the home appraisal
Bernstein says this will set finance buyers up for success.
“It competes somewhat with cash. It still doesn’t look on the front page of that contract as ‘all cash,’ it still shows financing, but at least it’s as close to it as you can get,” she said.
When it comes to home pricing in this market, Bernstein says with the lack of inventory and if a home is priced correctly, it may get multiple offers,
“As a result, with multiple offers, the buyer is likely going to have to be competitive with an over-the-asking price,” she said.
The buyer also has to pay the difference in cash at closing, but getting your dream home may still be worth it.
“Mortgage rates in 2024 are higher than mortgage rates in 2023. That’s a fact.” Bernstein said. “But, in my opinion, they’re still reasonable.”
One word of warning on waiving contingencies on the appraisal, often mortgage lenders will agree to lend a percentage of the appraised value of a house. If your offer ends up being more than the appraisal, you will have to make up the difference yourself in cash.
To buy or to rent
We told you earlier that Texas is the number one growth state and half of all U-Haul’s one-way traffic arrives in the Lone Star state, but which is best when you’re considering your move? Renting or buying?
Let’s weigh the pros and the cons.
You can turn the key to walk through your “home for now,” or your “forever home.”
Renting versus buying has become a popular debate, especially in Texas where so many new faces are looking to call the Lone Star state home.
Dalila V. Pulido is a realtor with Realty Associates and she said mortgage rates, or the price of a home has not stopped people from exploring the housing market.
“People are still purchasing. We still have a good market out there,” Pulido said. “I know that inventory is kind of low, but people are still purchasing. People are still enjoying a good home.”
Some would still rather rent.
“(It’s) a short-term commitment. You don’t have to worry about repairs or maintenance,” Pulido said.
When leasing, the upfront costs are typically lower than the costs associated with buying a home. Pulido said the major disadvantage of renting is the lack of equity and renters aren’t building wealth through homeownership.
“When you purchase a home, you have your pride of ownership, equity buildup, and you have your tax incentives,” she said.
You will be responsible for all repairs and maintenance for your home compared to renting but choosing the best homeowners insurance plan for you will help with those unexpected expenses.
“If something starts to leak, have a good home warranty that will help you with leaks or good flood insurance,” Pulido said. “That’s money coming out of your pocket however, it’s a long-term commitment.”
The major takeaway when considering whether to rent or buy is where you are in your financial situation.
The city of Houston has programs available to help people buy a home... like downpayment assistance… you may be able to purchase your home with zero down depending on what you qualify for.
