You may already be familiar with how seasonality affects the real estate market. But what is it, exactly? “Seasonality” describes the natural (and predictable) fluctuations in the market based on the time of year. The effects of seasonality can be seen across the country, although different regions may experience it differently.
Nationwide, the winter months tend to be little slower, with fewer homes for sale, longer days on market, and lower sales prices. Then, as temperatures rise, both buyers and sellers enter or re-enter the market, and the market picks up again. As temps cool later in the year, so does the real estate market...
The hottest time of year for real estate? You guessed it - SPRING! According to the National Association of REALTORS, the most activity takes place April through June each year. That’s also when we tend to see the most homes for sale, higher prices, and shorter days on market.
It’s important to note that #1 - seasonality doesn’t affect new home sales quite as much as it does existing home sales, and #2 - here in Hampton Roads, we tend to be somewhat insulated from major swings in the market, including seasonality.
Here’s a snapshot of the Average Daily Home Sales and Median Days on Market by month, as found in NAR’s non-seasonally-adjusted existing home sales, U.S. Census Bureau, REALTORS(R) Confidence Index:
Season-by-season, NAR tells us that:
- Peak Season is April through June
- Demand is at its highest during these months, meaning sellers receive premium prices and homes sell quickly. There tend to be more homes available for sale, too, which is good news for buyers.
- July though September sees continued high activity
- Generally, buyers will be looking to find a home before the beginning of the school year, making it a good time for sellers. There may be fewer buyers in the market, though, meaning less competition for those still searching.
- In October through November, the market slows
- According to NAR, the typical home is 5% less expensive than in June, and there are typically fewer buyers actively searching. The up-side for sellers is that the buyers that ARE looking tend to be highly motivated.
- The lowest activity is seen in December through February
- Cold weather and holidays results in winter being the slowest season. There are normally fewer homes for sale, and fewer buyers looking for homes. On both sides, those who are “in the market” during this time are usually very motivated, so there is opportunity to be found for both sellers and buyers.
BOTTOM LINE
If you’ve been thinking of making a move, and want to take advantage of peak season, let’s connect. Curious about want to expect in the Hampton Roads area? Let’s connect. Whether you plan to sell or buy, now or in the future, I’m here to help.