During December and January, the housing market stays fairly quiet. However, around springtime, a flurry of activity begins. Buyers start looking for properties in late January and early February, and they increase their efforts as March approaches. At about the same time, sellers begin listing their properties and preparing for a move. This frenzy of activity remains constant until August or September, when a lull hits. There is normally one more small push, around October, before the winter calm once again takes hold. Why is this important? Understanding the trends of the housing market often makes it easier to buy and sell a house.
National Trends
Across the nation, March and April see the most search activity from buyers. Therefore, sellers benefit from listing their property just ahead of this time, around February. There is also a lot of search activity in the summer, during June and July.
Each state varies a bit, as the weather influences the activity of both buyers and sellers. For example, in Florida, February sees a lot of search traffic because it is warm outside; that encourages buyers to look up properties and to visit them. However, people that live in the Midwest wait until the springtime to do most of their searching. It is warm and dry then, which again makes it easier to visit potential homes. Despite the regional differences, across the country, September through December is a slow time.
Sellers often make more when homes are sold during these peak times. In general, they can expect to make about three percent above the annual average in May and June. However, if the home is sold in December or January, they typically make three percent less than the annual average.
Tips for Buyers
Just because the trend is to buy in the spring and summer does not mean you need to follow suit. Buying in the off-season could be very beneficial; although there is not as much inventory available, sellers are often motivated to make a deal. If you are not willing to wait until the holidays to put in an offer, consider holding off just until the end of summer. Many families want to be out of their home before the new school year, so their children do not have to switch once classes begin. Therefore, it is often a good time to make a deal.
Tips for Sellers
Price your home competitively, particularly if you are interested in a quick sale. Homes listed at 15 percent above market value do not attract as much attention. In contrast, homes listed at 5 percent above market value are 10 times more likely to sell.
Just under 50 percent of all houses are sold during four specific months: May, June, July and August. In order to reach the largest market possible, make sure your home is listed by March. The closing process takes a while, which means that homes sold in May actually received an offer several weeks to several months before that.
Paying attention to seasonal trends in the real estate market can give you an advantage, regardless of whether you are buying or selling. However, more than anything else, use your needs and the needs of your family to guide you through the process.
This post is provided by Cedarhurst Real Estate, a real estate company located in Long Island, New York.
