Even though predicting the real estate market is not an easy thing to do, there are still some regular occurrences in which you can expect. Seasonality of the market is one of them, and it has a more significant impact than you might think. What the basic concept of seasonality means is that it matters when you’re buying or listing your house, as the season affects the offer on the market.
It isn’t unique to real estate: many industries have their slow months and times when the demand for services is high. However, if you’re trying to buy or sell a property here in Southern California, you should be aware of how seasons impact the real estate market. Let’s have a closer look at the concept of seasonality:
The Impact of Location
Seasons won’t have the same impact on every market. In Southern California, the weather is always beautiful, so pouring rain or freezing snow won’t come and have a cooling effect on the real estate market, nor will it heat up with the snowbird effect. However, even if there aren’t fluctuations in the market because of the weather itself, there are still seasonal effects to consider.
Seasons and holidays play a significant part in our real estate decisions. For most people, moving is a stressful process, and a hectic time if nothing else. It is the reason why both sellers and buyers avoid the traditionally busy times, like the holidays or the start of school. We see the most significant slow down in the market towards the end of the year, when people are preparing for the upcoming holidays.
On the other hand, summer months are the busiest time of the year, with July 31 being the day of peak moving activity. It leads us to the conclusion that home buyers are most comfortable moving during the summer when the kids are out of school, and the amount of daily stress is on a lower level.
Active vs. Slow Months
The traditional wisdom states that buyers should look for homes during the winter months when the market is at its least active. The idea behind this is that with less activity, the buyers would take advantage of the slightly lower prices. While that may be true in some markets, it still means that the buyers could potentially have many more properties to choose from during the active months.
Ultimately, taking advantage of the market seasonality is up to you. If you’re looking for a lower price home, you might be lucky enough to find a home you like in the winter months when sellers are more likely to negotiate.
If you need help determining your real estate market seasonality and planning how to make the most of it, contact a professional with a proven track record in the industry.
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