After another busy year in the real estate market, it seems like things are ready to settle down. Every listing was pending in less than a week, and, after six months, I finally closed my last buyer client Thursday. And now…? It’s so… quiet!
While there is not much data to support the idea that The Summer Lull is a real thing you can find blogs posts from boat sales to stock brokerages talking about summer lulls. The real estate market isn’t much different and its seasonality may be easier to understand than you think!
The real estate market is not just cyclical but seasonal as well. While timing the market is not likely, knowing how time affects the market will help you make better decisions when it comes to selling or buying a house. Patience is essential for buyers in the current market, but seller’s may want to start practicing this virtue too! My clients could expect to sell a house in six days, while for some buyers, a house search could last six months!! Hopefully, the housing market in Kansas City is finding equilibrium.
Seller’s can expect to see a Summer Lull right now, especially for $1M+ homes. It may seem smart to list your house and take a European Vacation while potential buyers tour your home, but your buyer’s are on the same summer vacation in Europe right now, especially because it is the least expensive we have seen in twenty years!! The buyers that are in town want to get out of their place right now. They’re just trying to beat the heat by going to the pool and the movie theater.
While things pick up again in September, it is important to consider back to school. Most homeowners with children in school are already settled by the end of June. Parents do not want to change schools in the middle of the year unless absolutely necessary. This is good news for the first time homebuyer with no kids, because they will find less competition through the fall into the holidays. So if you listed your house in July or August, remember patience is a virtue. If the house if fairly priced, there’s a good chance it will sell by October without a price reduction.
July and August are good times to buy for the cash investor as well. Properties sit a little longer and nervous seller’s are quick to take an offer. House flippers need to close on the house and have a few months to get it ready to list by spring for the best return on investment. If you get a cash offer don’t be afraid to counter-offer and ask for more money. Chances are you’ll get it, because one factor is driving the market right now more than locations, cycles, or seasons; Inventory is still king!