Must-Know Holiday Real Estate Market Trends

Going house hunting or house buying during Thanksgiving or Christmas up to the New Year is not usually the activity you have in mind, but believe it or not, seasons affect the American real estate market.

The onset of Thanksgiving heading to the yuletide season is usually a quiet period for any real estate transactions, mainly because the demand is lower as consumers are busy with other errands. In fact, according to property data provider ATTOM, homebuying activity typically comes to a near-standstill in December. However, this period is also an opportunity to bag homes at lower prices and with less tough competition.

 

The Rundown

Historically, home sale activities pick up in February and March, while home selling and home purchasing see significant increases during the spring and summer season, mainly because the weather is more favorable, kids are out of school, and mobility is not an issue, so demand is higher during those months.

An analysis of home sales conducted by ATTOM from 2013 to 2019 showed that December is a month when home buyers in the US get the best prices of homes. Of course, this varies from wherever you are in the country. In the south and some parts of the west, there’s less discrepancy between peak and slow seasons because temperatures are more moderate all year round.

 

The Pros

The season spanning from Thanksgiving to the New Year could be kind of slow in terms of home selling, but with some know-how, you can turn it to your advantage.

 

• Less competition

The winter is a significant factor in why there are fewer buyers during this season, but this is also the season where you see more seriousness from sellers and agents to offload the property, especially for those trying to meet a timetable or deadline. Inventory is low so that buyers can command higher prices, but sellers can negotiate better.

 

• Lower interest rates

Given the lower demand for buyers, interest rates are relatively down during the holiday season. If you are on the hunt for a home but have a limited budget, this is an ideal time to utilize lenders’ lower rates.

 

• Buyers are more serious

If you are getting inquiries for your home during the winter season, chances are these buyers need to secure a home before a specific deadline. January is typically when most job transfers happen, so buyers are looking to move in before welcoming the new year. Investors are looking to close deals by year-end for commercial properties, primarily for tax break reasons.

 

• Real estate services are more accessible

If you are selling or looking for a home during the off-peak season, there’s a huge chance that you will be accommodated promptly by your agent and the entire roster of professionals during the home purchase process. For example, scheduling a home inspection is easier because inspectors are more available. It’s also easier to book movers because fewer people move in and out of homes.

 

• The psychology behind it

This might seem silly, but the holiday season tends to situate people in a more generous frame of mind, which matters when closing deals. You’ll be able to negotiate better for the house’s price tag, and buyers could walk away with a dream home at a dream price.

 

The Cons

• Shorter daylight

Despite home prices dropping during the holidays, sellers must maximize the small window of opportunity before the natural daylight eclipses. From December to March, the sun usually rises around 8 am and sets at around 4:30 pm, giving you a small window after work hours for viewings.

 

• Lower curb appeal

You won’t be able to see the property in its full glory because of snow and rain. However, if potential buyers are willing to see your home, try your best to show the best features. You can even hold an open house during the season, particularly the Thanksgiving or Christmas weekend, which is ideal because you can take advantage of potential customers before they return to work. Doll up the house with minimal holiday decorations but don’t deck the halls too much.

 

• Lesser options

Don’t expect a plethora of houses for you to pick during this season, either. As most homes are sold during the spring and summer, places up for sale during the winter are usually those that did not get a new buyer during the peak season. However, that doesn’t mean that the property is not suitable. It might be priced higher than the competition, or an offer didn’t push through. A cooler real estate market means slimmer pickings for homebuyers.

 

The Real Estate of It All

The seasonality of the actual market varies from location to location. In Phoenix, Arizona, for example, winters are pleasantly mild, which makes it an excellent area for people to purchase an additional home and escape from the harsh winters. The same goes with Miami, Florida, since the city is basking in mild weather and sunshine almost all year.

Home selling isn’t ideal because of many factors, but viewing houses is not as complicated, thanks to technology. Virtual open houses are easy to schedule if you are from the East Coast and looking to move to the West Coast. If you are selling your home during the off-peak season, it’s best to be smarter about your marketing of the property to ensure that all your efforts don’t go down the drain.

Finally, if you’re aiming to sell your home fast, whether you need to transfer to a new city, move to a bigger space, or are liquidating assets, Shorefront Investments can expedite the process for you. They buy real estate properties in any condition in any location, even without repairs or upgrades, and close a sale within just a week or two.

If you’re interested, please fill out this form, and wait for a representative to reach out to schedule a viewing on your property. From there, you will receive a no-obligation offer, and get to decide whether you want to proceed with the deal or not.