To Buy or Sell: How Seasons Impact Real Estate
The market value of a particular property can be influenced by a number of factors. One example is the location. If a property is situated in an expensive area, then it stands to reason that its market value is also rather expensive.
Another factor is the environment surrounding the property. If there are more amenities in the area, then the market value of nearby properties also naturally increases.
Curb appeal is one of the more obvious factors that can affect real estate. If a property is attractive, particularly from the outside, then its value increases as well. But, there are also a lot of things that can affect curb appeal. This includes the appearance of the house exterior, landscaping, and even where you put the recycling bin.
Homeowners associations, in particular, place a great deal of attention on curb appeal, even going so far as to hire companies to perform various maintenance services to improve the community’s aesthetics and extend the lifespan of common elements.
Apart from these factors, though, property buyers and sellers must also take the season into account. As a matter of fact, the question of when to buy or sell a house can greatly affect the closing price of the property.
Seasonal Factors to Consider
There are certain seasonal factors that can impact how buyers and sellers behave in the real estate market. Two of the most important factors to think about are the holidays and the school year.
The holiday season usually doesn’t see a lot of home buyers or sellers. This is because most people are too busy preparing for the holidays to even deal with the details of buying or selling a house.
During the holiday season, people are on a time crunch — they’re trying to do all their holiday shopping and attend all the parties. It’s also not the best time, weather-wise, to arrange for or attend open houses.
The school year, on the other hand, also plays an essential role in real estate trends. More often than not, families with children wait until the end of the school year to buy or sell a house. Having to look for a house or buyers, switching schools, and packing are all tasks that people don’t want to do in the middle of a semester. Most buyers with children actually deem school boundaries to be very important when looking for a house.
When Is the Best Time to Buy or Sell a House?
Buyers obviously want to purchase the house of their dreams for the lowest possible price. Summer is typically a good time to attend open houses because you can see how the landscaping looks. But, summer isn’t a good time to actually buy a house.
What is the best season to buy a house? The answer is between late fall and early winter. It’s during these colder months that prices usually go down. In particular, January is a great time to look for a new home because this is when prices are typically the lowest.
The cold season is also when demand plummets. Not a lot of buyers are thinking about looking for a house in the middle of the holiday season. Due to the decreased competition, sellers offer their best prices to find a buyer fast.
In terms of the best time to sell a house, it’s the other way around. If you want to sell your property, the best time to do so is during the summer. The hot season draws in more buyers because the weather is better for house viewing. Summer is also when families with children look for houses because there’s no school during this time.
Due to the higher demand, sellers can typically close at higher prices in the summer. As a matter of fact, sellers earn the highest premiums in June, at a whopping 9.2 percent.
When Is the Worst Time to Buy or Sell a House?
It’s easy to know the worst time to buy or sell a house because it’s simply the opposite of the best time. If the best time to buy a house is during the cold season, then the worst time to buy a house is during the hot season.
Because summer experiences a higher demand, there’s more competition. It’s also because of this higher demand that sellers are more able to command a higher price for their homes. The busiest month for buying real estate is actually April.
When it comes to selling a house, the worst time to do so is during the winter. December, in particular, is a dead month for sellers. The cold season doesn’t bring in a lot of interested buyers, so sellers are forced to sell at lower prices. In fact, compared to the high premiums ofJune, December brings in the lowest at 3.3 percent.
It’s worth noting that this decline typically begins in September. It extends all the way to January and even early February. Overall, the cold weather and the hectic flush of the holiday season are why demand is so low during this time.
Regional Exceptions
Even though the weather is a major factor in discerning when the best time to buy or sell is, you should know that not all regions experience this in the same way.
For instance, the Southern and Western regions aren’t affected much by seasonal changes than the Northeastern and Midwestern regions. Why is that? Simply because the Northeastern and Midwestern regions go through more distinct summer and winter seasons. These regions experience colder winters compared to their Southern and Western counterparts.
Considering this, it’s fair to say that region can also affect the best and worst time to buy and sell your house. If you’re located in a region that doesn’t experience very cold winters, then you might not see a big difference in demand from season to season.
For Sellers: Focus on What You Can Control
Beyond deciding when to sell a house, you can’t really control how seasons change. Sometimes, you can’t wait until the best time to sell your house, especially if you have urgent reasons to do so. You can’t command the weather, so it’s best to focus on the things that are within your control.
As you already know, curb appeal is a huge determinant of success when it comes to selling your home. You need to appeal to potential buyers by making your house look as great as possible. You can improve the exterior appearance of your house by applying a fresh coat of paint and maintaining your landscaping. A round of pressure washing can also make a huge difference.
You will also need to show the interior of your home to potential buyers. To make your interiors look the best they can, clean up any mess and get rid of any unnecessary clutter. It’s also worth repairing any interior damages you may have.
There’s No Shame in Asking for Help
Even if you have a passing knowledge of how real estate works, you likely need help from a real estate agent when buying or selling a house. A real estate professional has a better understanding of the real estate market, especially on a more local level, and how trends can affect the closing price. If you really want to land the best possible deal, as a seller or a buyer, don’t hesitate to hire a real estate agent.
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