The Effect of Seasonality on the Real Estate Market

When it comes to purchasing or selling a house, timing is everything. The housing market’s supply and demand is one of the most important aspects that might influence the buying or selling of a home. We all know that the property market swings from year to year, but the seasons within a year also have a role. Whether you are buying or selling, it is critical to understand how the seasons impact the real estate market to make the correct decisions at the appropriate time.

Factors Influencing Seasonality in the Real Estate Market

Weather is one aspect that influences the seasonality of the real estate market, albeit it varies by area. For example, locations with cold temperatures, such as the Midwest, generally have fewer property sales during the winter months. Still, areas with warm climates, such as Arizona and Florida, sometimes have a “snowbird impact,” with individuals relocating or purchasing second homes during the winter. Each location has its own subtle influence; therefore, it’s critical to understand the trends in your specific market.

Seasonality is not limited to weather, and while weather influences vary by market, national elements contribute to seasonal shifts in the real estate market.

The school timetable is one such element that significantly impacts supply and demand in the property market. Many buyers and sellers with children are apprehensive to uproot their families in the middle of the school year and will postpone their relocation until the school year’s finished. Therefore, late spring and early summer are ideal seasons for transferring families to allow for more free time during the relocation and to allow their children to begin their new school on time.

Holidays have a massive impact on real estate seasonality as well. Statistically, fewer individuals relocate between November and January than at other periods of the year. Most people don’t want to add the logistics of moving to an already busy season between seasonal activities, family obligations, and end-of-the-year deadlines.

How Seasons May Affect Your Buying Decisions

Spring is an excellent time of year for homebuyers since sellers are eager to offer their properties towards the conclusion of the winter season. In specific markets, the start of spring is when sellers start thinking about putting their properties for sale for the following year.

Summer is the most popular period for homebuyers to look for a house in many areas. It is also an excellent time for sellers to sell because there are more purchasers than available houses.

The back-to-school season is ideal for renters looking to buy a home. Homebuyers frequently have the ability to negotiate beneficial conditions with sellers, such as cheaper pricing or seller-paid closing expenses.

How Seasons May Affect Your Selling Decisions

As a seller, you want to be able to sell during peak market conditions, when everyone is looking at your home and demand and pricing are high. If you don’t need the proceeds from the sale of your current home right away, buying in the winter, arranging a short-term living arrangement—whether that’s leasing, temporarily moving in with others, or something else—and then selling in the spring can be a great way to maximize the trade between what you’re selling and what you’re buying.

Conclusion

Seasonality is a factor that buyers and sellers can use to their advantage, whether they are looking to relocate or sell their current home. Understanding how the seasons affect the market will give buyers and sellers a better chance of getting their ideal home at the right price, with the correct terms, and in the right location.

Are you in need of a Folsom realtor? Whether you’re buying or selling a home, Folsom Realty can help you make the best real estate decisions in the communities of Folsom Lake and El Dorado Hills. Give us a call today!