Real estate is a cyclical market meaning there is a cycle in which the sales of homes generally follows. Historically, spring and summer time is when you will find the most activity in the housing market. The weather is favorable and most families like to move while the kids are on summer break.
So what about the Holiday Season?
Should you be scouting out for your future residence while everyone spends their time Christmas shopping at the mall or would you be better off hibernating till the spring time as you indulge in all that the season has to offer?
We’ll take a look at why some may choose to forego tradition and ring in the new year moving while others don’t.
Competitive Advantage
As most buyer’s do opt to take a break from home buying and spend time with their family, the few determined buyers remaining now find themselves in a favorable position. The decrease in potentially competing buyers increases the likely hood that their offer or offers may get accepted without the fear of multiple offers driving the home price higher than desired.
Supply and Demand
Since many buyers do step to the sidelines, sellers find themselves in a predicament. Reduce their asking price or take the home off the market till the spring. With fewer buyers, sellers who must sell, are now in a fierce competition to attract a buyer for their property giving a buyer much room to negotiate pricing.
Lack of Selection
Just as many buyers decide to put their plans on hold during the holidays, so do some sellers.
The result, a limited selection for buyers to choose from. Buyers may be able to get a better price but finding that right home may prove to be more difficult.
Closing Delays
Another challenge when buying homes this time a year is all the missing business days one would have most other months in the year. With so many holidays in the calendar, securing a loan, scheduling home inspections, receiving HOA documents all take much longer than they would otherwise since most people begin taking time off, slowing the pace of business. Having an accepted offer in mid November will surely have you moving in after the new year.
The Bottom Line
There are many reasons why a buyer would or wouldn’t buy a home at any given time. The determining factor of each will be the underlying motivation one has for buying a home. Regardless of when you decide to buy your home, it is important to work with a realtor who is familiar with current trends in the market so that you can be aware of what the challenges will be in your search for your new home.
How do you feel about moving during the Holidays?
About Daniel Di Matteo
THE REAL ESTATE BUSINESS HAS LESS TO DO ABOUT SELLING PROPERTIES AND EVERYTHING TO DO ABOUT HELPING PEOPLE.
