Spring and Summer are when the real estate market gets hot. It’s also when the weather heats up, too. Coincidence? Nope.
The seasons historically have a strong influence on the health of the real estate market. This is certainly the case here in the Midwest as we see strong differences in our seasons (hello Chicago winters!) Most of the homes sold during the deep winter months here in the Midwest are sold out of true necessity…job relocations, unavoidable family circumstances, etc.
But even in geographies like Arizona where the climate generally maintains a “summer” vibe all year, there are ebbs and flows in the market thanks to changing seasons. According to the National Association of Realtors, in the “slow months” of late fall and winter, sales activity in the Midwest is typically 62% of the activity during peak season – this is compared to 70% in warmer, southern areas.
In general, the majority of people wait to buy and sell real estate during those busy spring and summer months for various reasons. Some of the benefits of doing this?…
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For families with children, there is no uprooting during the school year
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For sellers, curb appeal potential is at an all-time high as the sun shines and flowers blossom
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For sellers, foot traffic and general buyer interest are higher during nice weather
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For buyers, inventory is higher in the summer months
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For buyers, especially if you’re looking for a home that you want to make your own, spring and summer are the perfect time for renovations and home updates
But I’m getting asked a LOT lately: “So, what about THIS spring and summer? Are people really moving in the middle of a global pandemic?”
With COVID-19 in full force this spring (and presumably keeping a bit of a grasp on us all into the summer months and beyond), we’re seeing a shift in our industry…but we are not seeing it stop altogether.
What we’re seeing is a quick tap of the hypothetical “reset” button. So, instead of the strong start we usually see in April, we’re anticipating (and already seeing data to support) that the buying and selling boom will be two months later this year.
So, even with the current health crisis impacting how we are buying and selling real estate (VIRTUAL!), the seasonality still has influence. With the warming weather, people are selling their homes…even while staying home, thanks to shelter-in-place orders.
Curious how we’re doing this for our clients? Learn more here.