What the Changes in Season Mean to Real Estate
The real estate market fluctuates regularly and predictably. As you might have guessed, the fluctuations are impacted not only by our seasons, but also by school schedules and holidays.
Many people assume that when school gets out towards the end of May, there is a large rush of families hustling to move and get settled for the next school year. How the market unfolds is, in fact, counter to this general assumption.
The most active season for real estate in the Denver Metro area is from late March through late May. Common statistics track closed sales, and the charts and graphs often presented to the public show a housing spike in June. This reported spike is homes closed: homes that actually went under contract in April and May. By June, the market has in reality slowed for the summer. Most families are in a comfortable rhythm during the late winter and early spring and find that the task of finding or selling a home is more reasonable at that time.
When school lets out, families are heavily engaged in life without school: summer vacations, swim team and sports, camp, finding day care, etc. Warm days often mean weekends in the mountains, barbecues, and parties. Days are more scattered and unpredictable.
During the summer months, our market slows, inventories drop RISE, and the number of active buyers in the market decreases. The market is still active and homes are sold every day, but the overall volume drops. In late August, as the summer comes to a close and kids go back to school, families settle back into their routines, and the market picks up for the fall season.
The fall season lasts from late August through mid-November, barring a Colorado blizzard, which can shorten the season by a few weeks. The fall season is dynamic and fast-paced since it is shorter and has a more definite ending to it with the coming winter holidays, compared to the spring season that has a blurred ending as summer approaches.
Once the fall season ends and the days grow shorter, many homeowners who haven’t sold their homes may pull their homes from the market and choose to wait until spring to try again. The dynamics in the winter months change considerably from the spring, summer, and fall seasons. Through the winter, the inventory of homes on the market decreases considerably, as do the number of buyers in the market. While the winter months are quiet, it is still considered a good time to sell, because although there are fewer buyers, there is also much less competition for each buyer. One benefit for sellers is that the active buyers in winter are focused and serious, unlike the “browsers” who are out in full force every spring.
As the holidays pass, cabin fever starts to take its toll. A new crop of buyers and sellers anxiously await the time when the ice and snow will melt and the winter months will give way to the early blooms of spring, signaling a new beginning…and the beginning of another spring real estate market.
The Steller Group successfully navigates every season in real estate. With smart selling and buying strategies, we leverage the opportunities afforded by the different markets in order to best serve our clients. If you have any questions about real estate, please call us at 720.593.9355 or email [email protected].