Seasonality is one vital factor that affects the house buying and selling processes in the real estate market. Since the hottest season of the year is going to start, you must know how it is going to work for an average homebuyer, agent, and seller.
Here are a number of reasons and aspects mentioned that can help you understand the changes happening to the prices in the summer. This will help you make better decisions as you learn about the effect of seasonality trends on the market.
Demand Gets Higher
Most of the working men and women get the summer break. This allows them to have more time to move and start a life in a new home. Moreover, it’s easier to uproot their families at this time of year as children’s flow of studies doesn’t get disturbed. They want to get settled before school starts again.
With that, June becomes the busiest month of the year as the demand for new houses gets higher! It goes without saying that prices are also affected by this change. With the excess in demand, prices continue to increase as well.
Limited Number of Houses
Since more and more people start looking for new houses in the summer season, it limits the number of available houses which further raises the market price. However, the inventory can be increased as those people who failed to sell their houses in the last season can try again.
On the other hand, winter is a low-demand period of the year, so the chances of getting a better deal with negotiation are higher. There will be a lot of houses to choose from, and the prices will shrink.
Realtors start listing more homes in summer, and this activity continues until the end of the season. At this time, inventory is limited but has a strong buyer demand. It will further result in less competition and higher prices.
So, if you find a suitable deal, don’t be afraid to take the leap as that option might not exist tomorrow because of the high competition.
Sellers Are Attracted to the Thick Market
Buyers are more likely to find the best deal in the summer, thus the increase of clientele. Even at lower cost, less buyers will be purchasing new homes in the next season. The wait is just too long!
Since more people want to buy homes in the summer, the number of houses in the market increases and the market gets thicker. The increase in the prices will further attract sellers, and there will be very few sellers who would like to sell the houses in winter.
It is a self-reinforcing process that will create a huge gap between the prices of houses in summer and winter.
More Time to Focus on Renovations
Long summer weekends also provide enough time to fix things in a home. This is the best time to repair a roof, apply a fresh coat of paint on the wall, add a facelift in your kitchen, and do a lot more things that can help add value to the home.
It’s safe to say that most houses will be available in a very good condition, which is a win-win for an agent, seller, and home buyer!
Added Sense of Urgency
As mentioned, a lot of buyers plan to buy new houses in the summer season. Since they want to get done with this process before the start of the next season, it adds a sense of urgency.
With that being said, buyers are not going to think twice about purchasing a home with a higher price tag. As a seller, this is your chance to increase your property’s value.
Sellers Are More Confident About Prices
Since there is no secret to what is going to happen in the market in the summer season, it makes the sellers confident about the prices they are demanding. Even the buyers know what similar properties will be demanding in that area, so they get a solid indication of the price they can expect to pay.
More Showings Can Be Planned
Summer days are longer and brighter than any other season. It gives the seller or agent a chance to plan plenty of showings. On the other hand, the buyer would also have enough time to carry out the inspections for his satisfaction. So, he will also be willing to pay more to get a better deal.
When Should You Hire a Real Estate Agent?
Now that you know what happens in the summer season with the prices and other aspects associated with it, you must start looking for an authentic and reliable real estate agent.
Also, the summer season is around the corner, so there will be so many agents out there looking for suitable clients. However, you should pick the one who knows how to deal with the client perfectly.
If you are a seller, make sure you choose the agent who knows how to help you get the best lead in the summer season. If you are a buyer, you must choose the agent who can help you find the best possible deal at the most reasonable price.