Written by: Hilary Atkinson
Summer is almost at an end, and with it, the summer housing market closes out as well.
The temperature may cool, and so may the sizzling number of home sales, but that doesn’t necessarily mean prices will cool down too.
Many sellers wait for spring and summer to list their homes. They do this because it is a general fact that more homes sell in the summer months.
This is mostly true because…kids are out of school, families have time to house hunt, and also ready their current houses to sell. Also, when it’s warm homes generally look nicer and have more curb appeal- the grass is green and flowers are in full bloom.
Here’s the catch though, just because more homes sell in the warmer months, it doesn’t always mean these homes sell for more money.
Let me tell you why…
It all has to do with a little thing we call, “Supply and Demand.”
If more houses are listed in the summer months, there is more inventory. In other words, there are more products (houses) for consumers (Buyers) to purchase.
With more houses on the market, a competitive selling environment is created. Competition may compel a seller to price their house more competitively to they can, “kill the competition.”
Now, if fewer properties are generally listed in fall and winter months, that means there are fewer products (houses) for consumers (buyers) to choose from and eventually purchase.
It’s all common sense right?
Well, this next part is the important one.
In the fall, the housing market slows. There are fewer sales because fewer homes are being listed, BUT if the number of buyers stays relatively the same, the demand for housing out weighs the supply.
Translation: The housing market ends up with too many buyers wanting to purchase in our area, and not enough houses to choose from. There simply are not enough houses for everyone.
So, for sellers, this is where the good news comes into play: Fewer Houses for Sale + Too Many Buyers wanting to Purchase = A Seller’s Market.
So, while autumn may mean the changing of the leaves, and a slowing of the housing market, it could be an opportunity for seller’s to cash in on Buyer demand.