Homeowners looking to sell their properties may be surprised to learn that housing prices aren’t just affected by economic fluctuations or local property value—seasonality can also impact real estate and the price you can fetch on the market.
While each area of the country differs in terms of real estate value, real estate seasonality trends play a huge role in what buyers are willing to pay and what sellers are able to get. So what seasonal factors impact the market, and what can sellers do to beat these seasonal trends? Let’s take a look.
In general, the housing market heats up along with the weather. No one wants to pack up and move into the middle of a snowstorm!
Spring and summer are also the ideal time to complete simple home improvement projects, like adding a fresh coat of paint and improving the landscape to enhance curb appeal. The busiest moving day, studies show is July 31. But the weather isn’t the only cause of these real estate seasonality trends.
The slowest time of the year for buying and selling homes is between November and January. It’s not just because it can be cold—most families prefer to be moved in and ready to entertain by Thanksgiving.
Afterward, Christmas, Hanukkah, Kwanzaa, and other important celebrations fill the calendar with cocktail parties, family dinners, and get-togethers. After New Year’s Eve, the real estate seasonality starts to improve. Once the decorations are put away, most sellers wait for the thaw before listing their homes. Most buyers also prefer to wait until the inventory is better.
Another real estate seasonality aspect is the start of the school year. Families, for good reason, want to make sure they’re settled in before classes start, especially if they’re moving into a new school district. The transition is challenging enough, without having children uprooted into the middle of their studies. If a major selling point of your home is the great schools nearby, listing in April or May is your best bet.
Beating Real Estate Seasonality
Real estate seasonality may make logical sense, but that doesn’t mean the timing fits within your needs. If you’re looking to sell in order to convert your home equity, one popular option is a sale-leaseback. This process allows you to sell your home, convert your equity into cash and then rent the home back. Selling your home when the inventory is low can often result in a better end result—without having to worry about moving out.
Some sale-leaseback programs convert your home value to cash before you put your home on the market. Without having to worry about upending your life, you can take your time and list your property when the market heats back up, and you’re ready. You’ll still benefit from the appreciation and have the freedom to negotiate with buyers to get the most favorable bottom line.
Ready to learn more about these options for beating real estate seasonality? Talk to a real estate expert about the best solutions.