Buying and Selling in the Fall Is Different Than in Other Seasons
Although spring and summer are considered to be the prime seasons for real estate, the fall—which is right around the corner, by the way—is a time when many buyers and sellers are active. Unlike the spring and summer, though, the fall season does have its own dynamic when it comes to buying and selling.
There are likely to be fewer buyers in the fall… Generally, the number of home sales tapers off after August. Not only is this decline in buyers due to the fact that many buyers have already found homes during the spring and summer, but also because the end of summer is often a deadline for buying. Homebuyers with children often want to be settled into their new homes once the new school year begins.
…But inventory levels don’t drop as much from the summer months. According to data from the National Association of Realtors, existing home sales fell by 28 percent between June and November of 2016. However, housing inventory fell only by 12 percent. In other words, there are fewer buyers but close to the same number of homes for sale in the fall. The result of this is less competition for buyers and more competition for sellers.
Buyers and sellers may be a bit more desperate. Whether real or imagined, the deadline that marks the end of the summer real estate season may mean that buyers and sellers are more desperate. A buyer may settle for a home they’re not completely happy with—and rush through the purchase process—and a seller may start to think about offering more concessions to buyers in order to get their home sold.
Home prices may be a bit lower. One of the concessions that sellers may have to make is to lower their asking price once the fall season rolls around—especially if their home has been sitting on the market since the summer or even longer. Although this in itself doesn’t affect market prices as a whole, home prices are indeed historically slightly lower in the fall months.
“Seasonality” comes into play in the fall months. In the fall, many buyers and sellers start to become aware of the changing seasons. The bright colors of the spring and summer start to fade, the leaves begin to change and the weather starts to cool. This can certainly affect the market as buyers may view homes differently, sellers may change how they maintain curb appeal—and both buyers and sellers may start to plan ahead for the coming winter months.
If you’re considering buying or selling this fall, your first step should be to talk to your real estate agent and develop an action plan that includes dealing with the changing season.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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