In tune with the weather, the housing market tends to cool down in the winter and heat up during the spring and summer months. This is especially true in regions that see dramatic seasonal changes. Those changes affect inventory, therefore influencing what buyers will have to pay. Summer real estate markets are typically faster, more competitive, and higher-priced than fall and winter markets. Translation: increased opportunities for buyers, sellers, and agents alike. So what can realtors do to capitalize on the season? Read on as we break down the trends and how to take advantage of the summer market!
More Inventory
Each summer, a new influx of homes comes onto the market. Available homes tend to jump by around
35% from February to August. This is great news for buyers of course, because it provides them with more options. For sellers, more listings on the market equals more competition. So they will need to take extra care and make sure their home shows its best. As an agent, making sure your listings are competitive is key. Advise your sellers on ways to highlight the home’s prominent assets, insist on professional real estate photography and take the time to post virtual tours online.
Faster Sales
Every summer, the pace of the market picks up significantly. For example, where the average American home takes 34 days to sell in January, homes tend to sell in just 15 days in the month of June. For sellers, this means it’s important to be prepared for a quick sale. Have a new home or a temporary place lined up in case the home sells fast. And for buyers, it means they must be decisive. Waiting to make an offer on their dream home could mean losing it to a quicker buyer. It’s also not uncommon to see bidding wars in the summer, so buyers should prepare for action – especially when it comes to more desirable properties. As an agent, be sure to educate both buyers and sellers so that everyone is prepared to move quickly during the fast-paced summer season.
Higher Prices
A recent ATTOM analysis found that homes listed in May sell for a premium of 12.6% above market
value on average. To take advantage of the summer market, sellers should aim to list in May or June (leading to a sale in June or July). With the season just beginning, it’s not too late to list and capitalize on this trend. Homes listed in early summer still benefit from high buyer interest – where listing later in the summer may require more competitive pricing. For sellers and agents, the seasonal price jump is your friend. Buyers will need to be prepared to spend a little more in the summer months of course, but there are perks to a summer purchase as well…
Advantages for buyers
There are three main factors driving buyers in the summer real estate market. First off, it’s an ideal time for families with kids to move. The kids are on summer break, giving them time to be established in their new home before the next school year starts. It’s also important to consider the busy holiday season that starts around October. From Halloween through New Year’s Eve, families are in holiday mode. Sellers don’t want to worry about keeping their homes show-ready and buyers don’t have the time (or money) to spend shopping for a new home. Finally, there’s the weather to consider. Where winter is a time for staying cozy inside, summer’s longer daylight hours mean more time for house hunting. Plus, houses typically show better in good weather. Sunny days mean good lighting, green grass and flowers in bloom.
Tips for Agents
Knowing that now is the prime selling season for real estate agents, how will you take advantage of the
summer market? Getting your business ready to handle the extra work is a great place to start. Make sure you’ve got a strong website, summer marketing strategy and team to back you up in your quest. It’s also wise to advise sellers to list in May and June (that means now!) to maximize sale potential. And while it can be tempting to take a hiatus in the summer months, we suggest working longer hours now and saving your vacation days for winter when the market slows down. With a little planning and hard work, agents can earn enough income during the summer to take the winter season off completely!
Are you buying or selling a home this summer? Let us know your experience with the summer housing market in the comments below – and have a winning season!