Year in and year out, the real estate market changes, from the glut of foreclosures a few years back, to the tight inventory we’re currently seeing. These long-term changes can be dramatic, and hard to anticipate. However, there are other more predictable (albeit smaller) cycles in the real estate industry, cycles linked with the calendar year.
In this video, Tom Iovenitti talks about this sort of trend. For example, it might surprise you to learn why condo sales tend to be higher in September and October, or that more sales of expensive properties occur later in the year.
As we approach the holiday season (a notoriously slow period for the real estate industry), and start planning for next year, it’s good to take a step back and look at the big picture, so your business can ride the waves of the industry rather than try to paddle upstream against the current.
Well, when do people buy and when do they sell? More likely there are some highs and lows in the industry that, from time to time, year after year, continually come around and repeat themselves. So as a real estate professional, it’s probably important to know what these trends happen to be.
I’m going to start with September. September being a month that’s generally “condo season” – and why would that be? Condos are generally very important in September because a lot of new married couples get married through June, July, and August, but they tend not to move until after the last vacation in September, which is Labor Day. So September and October generally become a very high, high motivation for those people to move into condominiums.
Million dollar properties seem to sell, at least for the most part, between October 15th and the end of the year. More people are inclined to want to get those larger transactions done and take tax breaks and advantages before the end of the year.
Starting in January, you’ll find a kind of slowdown, much like August after July 31st. The reason that is is that August has a lot of vacations. In January, people are licking their wounds from the holidays. So starting around February 1st, we tend to see the single family home market start to open up. So between February 1st and probably the end of July, that’s probably the largest, best season for real estate. They all try to get them done before the end of July, primarily because they want to be installed and settled in their homes before the new school year.
So this is the trends as we see it, and I’m sure it happens this way in different parts of the country. You might find that a little different in Florida, New York, Texas… but for the most part, I think you’ll find that people fly just like a flock of birds.
So anyway, this is Tom Iovenitti, from Benutech, Incorporated, bringing you ReboReports, and we’ll see you soon. Thank you.