Seasons In Real Estate
In most locales there are obvious seasonal changes both in weather and real estate. When a town is buried in snow or flooding from colossal amounts of rain it’s pretty difficult to incentivize buyers to come and take a look at a property for sale. On the other hand try getting people to leave their air conditioning to attend a summer open house in Palm Springs when temperatures rise to 120+ degrees. Climate influences buyer demand so it’s important to consider what time of year one is likely to get the best price for their home. Depending on a homeowner’s strategy however, it may be a different season than assumed.
Weather obviously plays a large role and impacts different areas during various times of the year, but it isn’t the only factor. Typically holidays act as a major distraction for the majority of Americans, too. People are frequently out of town spending time with family or vacationing. The result; fewer buyers and fewer properties for sale. With this in mind it seems obvious that selling during the summer is best. After all, median sales prices peak in July and August in most places and buyer demand increases, therefore creating an influx of inventory. The downside? Suddenly sellers are competing against every other house during the most active time of the year. One might believe just because it’s real estate’s busiest season that they’re automatically going to get the most money, but that may not be true.
At the time of this post, available inventory in the Bay Area is low, frequently creating a frenzy of activity around most listings. It’s not uncommon for buyers to compete aggressively for a turn key property, especially if it’s much more appealing than it’s competition. As long as the sellers priced it correctly there’s plenty of interest, but what if the property stands out negatively? If the house is in desperate need of a new roof, considerable interior updating or is the ugly duckling on the block, a seller may need to compete for a different kind of buyer. When everyone else is looking at homes during the summer, some home buyers are seeking an opportunity when there’s less competition. Sometimes the transitionary seasons of spring and fall offer a less attractive home a better chance at selling.
There are clear trends from year to year, but every property is unique in one way or another. It’s important to consider multiple strategies when planning to sell in order to minimize time on market and maximize sales price. Always consult with an experienced real estate agent to help you pick the best price and strategy when selling your home.