How Market Values are Affected by the Real Estate Season
The real estate industry can be tricky to navigate, especially considering its timing. Timing can affect any endeavor's outcome. Learn how the real estate season influences the market value of properties below.
Understanding the Real Estate Season
Many things can affect the market value of a property or unit: location is one. A property in a high-end neighborhood can have a naturally higher market value. The surroundings can also play a part in influencing the market value of a property. For instance, if more amenities start to open in your neighborhood, it causes the values of nearby properties also rise.
Another thing that can shape the market value of a property is curb appeal. In other words, how attractive the property is, especially when viewed from the street. Homeowners associations focus significantly on how properties look and have restrictions to control that. Influences include curb appeal such as landscaping, the house exterior, and even trash bin placement.
Beyond location and curb appeal, though, one thing that both buyers and sellers must consider is the season. The month you choose to either buy or sell a property can inform your closing price.
How the Seasons can Impact Real Estate
Believe it or not, the changing seasons and weather can affect real estate market trends. It can also influence consumer behavior. Here are some seasonal property factors you must take note of:
The Holiday Season. Because of the busy schedules associated with the holiday season, it is unusual for there to be a lot of buyers or sellers during this time. Most people are more focused on attending events and doing holiday errands. Additionally, the weather conditions during this time are typically not conducive to real estate.
The School Year. The school season is a significant factor, too. Families typically do not want to move houses in the middle of the school year. According to Realtor.com, 73 percent of buyers with children place importance on school boundaries when searching for homes.
So What's the Best Season to Buy and Sell a House?
House hunters naturally want the best price for the property they wish to buy. Although summer is the best time to view houses because you get to see the state of the landscaping, it is not a good time to buy a house. The best season to buy a house in late fall and early winter. January, specifically, is when buyers find reasonable prices for new homes. During these colder months, prices tend to drop. Additionally, the number of buyers decreases, so there is less competition overall. Less demand in the real estate market directly translates to better deals.
Conversely, the best season to sell a house is during the summer. During this period, buyers are more inclined to go house hunting because of the excellent weather. Additionally, families with children want to close and move in before the school year begins. There is a higher demand in summer, so home sellers can usually set higher prices. According to ATTOM Data Solutions, sellers experience the highest premiums (9.2 percent) during June.
When You Shouldn't Buy or Sell a House
The real estate chart flips when it comes to the worst seasons to buy and sell a house. The worst season to buy a home is during the summer because of the higher demand experienced during this season. April, in particular, is the busiest month of the year for the housing market.
Landing the house you want is also tricky because there tends to be more competition. In the summer, there are more prospective buyers looking to close deals. Therefore, sellers can demand higher prices.
On the other hand, the reverse is true from a seller's perspective. The worst season to sell a house is during the winter, especially in December. During this time, sellers experience significantly lower premiums, with the lowest at 3.3 percent. The decline usually starts in September and continues until January to early February. The inclement weather and general busyness of the season contribute to the low demand.
Consider Where You Live
Although the weather plays a significant role in determining the best real estate season, it is worth noting that not all regions are made equal. The Northeast and Midwest, in particular, experience more pronounced effects than the South and West regions because the Northeast and Midwest have more contrasting winter and summer seasons. Winters in these regions are colder and more evident, whereas winter in the South and West regions do not differ significantly from summer.
The best and worst times to buy and sell a house depend on your region. If you live in a state where winters are not very cold, you may find that the demand remains mostly the same throughout the year.
Seeking Professional Assistance
Whether you are buying or selling a house, it is imperative to seek the help of a real estate agent. An experienced professional knows market trends and can help you land the best deals. In addition, real estate agents know the local scene and can provide you with valuable information. Contact Condominium Associates—we are here to help you!