The Boston area runs on an academic schedule, whether you have anything to do with schools or universities or not, it still affects you. You probably already noticed the lighter traffic due to the student exodus. It definitely affects me in the car and also at work. I work only as a buyer’s agent, helping people buy houses (not helping people who sell them, nor helping people who rent them.)
Renters, do you have a lease that ends in June, July, or August? Doesn’t it seem like everyone moves in the summer? After September 1st everyone is nestled in for the year, right? Today, I begin to focus one day a week on rental issues. If you have questions or stories to tell, email me.
There are two factors that create the typical pattern of a buying that revolves around a September 1st deadline. First, there is lease renewal. The second is public school placement. My suspicion is that the former is a result of the latter. Here in Greater Boston real estate buying and renting runs on an academic schedule. In other parts of the country, this is not as true. Here, peak buying season starts sometime when people perceive that winter is over, weather-wise. It runs through the spring. Then it slows down considerably after some buy and some choose to rent for another lease cycle.
First-time house buyers are renters. Renters who have leases generally make their renewal decisions in the summer, with everyone expected to be settled by September 1st or earlier. Those with Tenant-at-Will status keep looking, along with people who are trading up or trading down or relocating.
Those who have not found what they are looking for in time to transfer their children to a new school for September frequently choose to stay put for another academic year. This is true of both renters and owners who are looking to trade up or down.
Currently, it takes about a month to get a mortgage processed. Add that time to the time it takes to have home inspections and get a Purchase and Sales Agreement written, and the total time between when a person finds a house and when he or she can close is five to six weeks (or more.) Therefore, to be settled in before the lease ends or before school starts, a buyer has to find their house by June 15 for a July 31 lease deadline or by July 15 for an August 31 lease or school deadline. This deadline is made tighter by those who are required to give 60-day notice instead of a single rental cycle. So, I am hoping to feel a Sea Change in the market after next weekend and another one in mid-July. I look forward to the summer doldrums.
In anticipation of summer, I begin the landlord and tenant series that I run in the summers. I have sometimes called this series “Landlord-Tenant Hell” and some years I focused a bit more positively. What are your stories? What do you want to know about rentals?
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