The seasonality of Real Estate
There is definitely an ebb and flow of over the year when it comes to market activity. The spring market typically starts in January with buyers being ready before sellers. New listings start to come on the market starting in early April peaking in May and then falling off in June as folks get busy with weddings, graduations and such. There is an uptick again after Labor Day as the fall market starts and then ebbs off as the leaves fall off the trees. Our quietest months are typically the middle of summer and the time between Thanksgiving and New Year’s Day.
What is happening now?
“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 Florida Atlantic University.”
The first paragraph of a RISMedia article brought to my attention by a colleague. I can honestly say that I’ve been busier in the last few weeks than I was in the first three months of the year. I kept hoping that the spring market would get going and couldn’t figure out why it was so slow.
At this point, why it was slow then is somewhat irrelevant and I haven reason to believe that this summer will be really great.
As a buyer, you might have less inventory to consider but anyone with their house on the market at this time of year is on the market because they really want to sell their house. That doesn’t mean that you will be successful with a low-ball offer, but it does mean that you might be able to negotiate with less competition. So if you are out looking at houses be ready with a solid pre-approval letter because if there does happen to be others looking at the same home you want to be in a position to move quickly because on the flip side of a seller on the market now – a buyer who is out looking at homes instead of being on the beach is very likely not a tire-kicker.
As a seller, there might be fewer people looking at your home, but as stated above those that are out looking instead of relaxing on a beach are very likely in a position to make an offer. Another excerpt from that same article:
“Sellers should make themselves and their home available to be shown by real estate agents and make sure it’s as pristine as possible, Johnson said. Make necessary improvements such as new paint, fixtures and flooring. But don’t go too far, Johnson warned.
“Be careful,” he says. “What you think is a nice improvement is another man’s gold shag carpeting.””
While it’s nice to be renovated, painted, and ready to go, you should be mindful of the enhancements you make. Updates in the last year or so provide insurance against a listing that might linger on the market for months, but it might not mean a higher sale, just a quicker one.
A word about home sale contingencies
The article mentioned above discourages buyers from asking for a home sale contingency. I think, in times when there is not a lot of buyer competition, a seller might be more inclined to entertain an offer with this sort of contingency. There are lots of different ways to handle that and my opinion on the changes depending on whether I am working for the buyer or the seller; also depending on how “sale-able” is the property that is the subject of the contingency. Contact me for advice on what makes sense for you if you think you need to sell your home before buying your next one. I am currently involved in three different transactions where there is a home sale contingency. Maybe I can help to make it work for you too.
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