Coming out of a hot summer market and into the fall of 2021, it seems the real estate market has followed the trends of the weather. Although we are without a doubt still in a seller’s market, real estate activity has certainly cooled off some. We are not seeing as many hair pulling moments amongst buyers that we were witnessing when it was 90+ degrees outside.
This should come as exciting news to those who have been thinking about purchasing! While we cannot do anything to combat the low inventory due to healthy demand, we can rest in the fact that finally, something this year is trending similarly to years past. If you recall, January and February were slower months with March being the turning point when things began to pick back up. This is how the market has traditionally acted- slow until after the Super Bowl and continuing to pick up pace as we enter summer. It begins cooling off a little before Labor Day as we enter the fall market and slowing more in the winter months. Just remember… houses sell every month because there are always people experiencing life events.
In three years of inventory history, the combined sales of November and December have far exceeded the best performing single month of any one in the spring. Julie and I worked with clients last year who purchased a great home for their family in December after getting it under contract in November. If they had waited until March to buy the same home, they undoubtedly would’ve spent more money due to higher levels of competition. Just last month, another client was able to win a contract in a multiple offer situation on a beautiful home with numerous upgrades while not exceeding the comps of the neighborhood. This same house in the summer months would have been the trendsetter for the neighborhood. In fact, the activity of October 2021 resembles the activity of November 2020. The biggest difference is that this year we are managing COVID and last year we were reacting to it. Both clients benefitted by having patience and persistence, and in the end, obtained their respective homes for a fair price based upon surrounding sales.
With a home being one of our largest investments and the place we spend most of our time, the home buying process can be a little tense. With nine years in the real estate industry, I continue to tell our clients, “Things always have a way of working out; just have faith.” Therefore, this month’s tip is to be the buyer in a market with less competition. Yes, it’s less convenient to move in the last part of the year and the beginning part of next, but in our experience, the tradeoff is a contract with a better price and more favorable terms.