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The housing market is often fluid, with ebbs and flows of activity. The changing seasons can significantly impact local sales and buyer competition. By identifying these seasonal factors, you can make more informed decisions about buying and selling in your region.
Much like how they can affect our moods and activities, the changing temperature and major weather events can impact the housing market. When the days are longer and warmer in the summer, people are more motivated to do activities out of the house, like open houses or home tours. Snowstorms or ice can bring a regional market to a snail’s pace.
However, not all regions are impacted the same way. For example, southwestern cities like Phoenix AZ can have a very active winter market because of their mild weather. There can be an influx of people relocating or purchasing second homes from the snowy and frigid northeast.
Many parents won’t move their families during the middle of the school year unless necessary. Additionally, according to ATTOMData, 73% of homebuyers, with or without children, say school boundaries are a large factor when it comes to buying a home.
Between family obligations, travel plans, and hectic errands, the holiday season can make buying or selling a home less of a priority. Many potential buyers will wait until Spring, hoping they can rebuild their savings to handle homeownership expenses.
April to June is historically peak buying season. The warmer weather, school ending, and longer days typically encourage more people to enter the housing market.
During this peak, homes tend to move quickly off the market. Buyers may encounter multiple offers and bidding wars before they can score a space for themselves. In fact, the National Association of Realtors (NAR) data reveals that home prices are 16% higher in June when compared to the national market in December to February.
Housing activity tends to slow down by 2% in July to September, according to NAR data. Families are settling into back to school routines and some regions are beginning to experience more mild weather.
A slower market isn’t necessarily bad news. In fact, these conditions can allow buyers to have slightly better negotiating power than if they were in the spring market.
Late autumn leads to an even slower market. As the weather cools and households begin to prepare for the holiday season, shopping for a home or trying to sell an existing home may not be a top priority.
Fewer buyers in the market means less competition and a drop in home prices. The NAR found that prices are an average of 5% less expensive when compared to June listings. During October and November, sellers may be more willing to negotiate about what contingencies and conditions buyers want.
At the turn of the calendar year from December to February, the market is usually at its slowest due to the holidays and regional colder weather. However, the market isn’t all bad in the winter. Buyers and sellers may find that they have more dedicated time with their homebuying professional team.
Talking to your real estate agent and mortgage lender can help you learn more about how the seasons impact your local housing market. Ready to learn more? Contact us today!
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