Macrealty October 2010 Market Update
With the kids back in school and people back at work, the fall housing market is upon us. Historically, this market has resulted in an uptick in sales as people return from vacation and the threat of winter looms. As the fall drags on, and more inclement weather makes buyer tours less pleasant, the market slows down. With fewer buyers looking at properties, many sellers decide to take their properties off the market to wait for spring. Because of this, the lower demand is often offset by the lower supply.
However, statistics consistently show that house prices tend to be lower in the winter than in the summer, which is why home price stats are seasonally adjusted. There are many reasons for this seasonal disparity, but simply put, people who sell in the winter are more likely to need to sell. And because there are fewer buyers, true negotiations between buyers and sellers are more likely to occur in place of auction-type multiple offer situations.
So what does this mean if you're a buyer or seller? If you're a buyer that has the flexibility to purchase during the winter months, your selection will be limited, but if you find what you like, you could very well get your home for a good price. If you're a seller that needs to sell, the limited supply can work in your favour if you have a good realtor that can effectively communicate to the market the unique features of your home.
