Weather affects the real estate market in more ways than one. From the season to the holidays to the best time to buy a moving truck, certain seasons are factors to consider when selling or buying a home.
Simply choosing the right season to list or buy a home can benefit you greatly.
When is the best time to sell a house? Let’s walk through the seasons—and determine the best time to shop, too!
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Cold
From October through January, people focus on the holidays—not on buying a home. In fact, October is one of the slowest months of sales ever, based on an analysis by ATTOM Data Solutions. This may prompt you to lower your price, leaving you with less equity to go with.
Sell
However, people are always buying homes, especially serious homebuyers. If you find a serious homebuyer, you can close at a faster rate than normal.
There is also something magical about being home during the holidays. Think of the possibilities of decorating it for potential buyers—tastefully, of course.
Buying
If you’re one of the few people who makes traveling a priority over the holidays, you may have grabbed a deal! There is less competition for you as a buyer. Plus, desperate sellers can lower their prices in the winter.
All of this comes with the risk of attending shows and signing papers in inclement weather.
spring and summer
These months are the hottest—so whether you’re buying or selling, brace yourself.
Sell
Many sellers wait until spring to list their properties. This may mean that there will be more competition for you as inventory increases, but there are also more buyers.
And more buyers can cause competition for your personal property! Bargaining and bidding wars drive up prices, and that’s great for the seller. Chances are you won’t have to say yes to that first offer.
But it could mean that buyers are pickier because they know they can buy more homes during these seasons. In summer especially, shoppers are highly motivated—especially families with children. Most moves happen during the summer months because it is the easiest time to move. The kids aren’t in school, you can take a day off from work, and it’s warm weather.
Buying
With spring and summer approaching, there are more homes available for you as a buyer to choose from. You will not have to compromise much on your wishes. Plus, the weather will be beautiful—perfect for picturing yourself on the porch of your future home!
You won’t be the only buyer though. As listings grow, so do the number of potential buyers, which means competition can be fierce. You may find yourself in bidding wars or moving the process along more quickly than expected.
Fall
Homes look beautiful against the changing colors of the leaves, but fall comes with fewer homebuyers as school starts up again and families settle into their routines. It is less convenient for people to move.
Sell
Similar to winter, a lack of buyer interest can lower the value of your property. That being said, in the fall buyers are eager and motivated to finally settle their routine into a new home.
So what if you are the buyer? Does the Seasonal Effect Affect You Too?
Buying
Without the blazing sun or snowdrifts, fall can be a great time to move boxes and furniture to a new home.
Competition may be less because many families bought their homes on the summer market. You can get good deals if sellers drop prices because they can’t sell during the summer. However, there are fewer options for homes in the fall.
how to know when to sell
There are two main questions to ask yourself when deciding whether this is the best time to sell your home – going beyond what the weather is like.
What is your home equity?
The ability to walk away with equity in your pocket is something to be proud of! The change of seasons can lower your listing price (think: fall and winter).
On the other hand, the season may offer more than you originally thought, such as a summer bidding war across the entire school district.
If you want to make more money selling the house than living in it, it’s a good financial decision!
Also consider what your next step will be. Are you selling your current home to buy another? Will you be able to find a new home to buy quickly and easily? Or is the market saturated with buyer competition? You don’t want to sell your home for a big profit, only to end up with a bigger mortgage than you planned.
Can you afford to sell and move?
Moving costs can range from $1,000-$3,000 when you hire professional movers. (Probably more if the move isn’t local.) This is an important cost to consider when making a decision, especially if you’re not walking away with as much equity as you thought.
The spring and summer months also come with higher moving costs as this is the peak season for moving companies. Consider shopping ahead of time and planning your expenses when considering relocating your family.
Additional Factors to Consider
What if you are buying an investment property and not a home for your family? There are additional factors to consider regarding seasonality.
buy a property with a tenant
You can often buy a buy and own property with a tenant and take over the lease at the time of purchase. It doesn’t matter if it’s cold like this. You already have a tenant and can start building home equity.
don’t buy new construction
The temptation to buy new construction is present in any season, but spring and summer markets have more options, which may deter you from buying new.
With new construction, there are potentially no costly repairs. But what if you live without a tenant for months? You’ll still lose money. As a rehabbed property will likely be updated, so significant repairs may not be a factor.
plan ahead for the unexpected
The big takeaway is that you need to crunch the numbers and look at job growth, location and comp in relation to the season. Don’t just assume that one season is the best to buy or sell. No one has a crystal ball, but the more educated you are, the better you’ll be able to navigate your investment purchases.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
