How seasons impact the real estate market
Category News
There are many factors that influence the real estate market, one of the most significant being seasons. That's right, the time of year you choose to buy or list can impact the cost of sale.
"Seasons impact the market due to several reasons. Weather conditions tend to influence people's preferences, while administrative dates, like the beginning and end of the school year often influence the decision move. In addition, social, cultural, and religious traditions, including fixed holidays can affect the market as people preoccupied with celebrations may be less inclined to engage in real estate transactions," says Berry Everitt, CEO of the Chas Everitt International property group.
Whether you're buying or selling, knowing how seasons impact the real estate market helps you make smart moves at the right time.
Summer
It's only fitting that the hottest season of the year results in a hot real estate market. The season's vibrancy results in better first impressions for potential buyers, due to lush gardens, green grass and blue skies. Furthermore, because the school year in South Africa runs from mid-January to early December, families prefer to move at the end of the year so their children can finish the school year at one school and start fresh at a new school in the new year. Additionally, during December and early January, interest in properties in coastal locations tends to increase. Therefore, summer signifies a time of competition in the real estate market.
Autumn
As the summer season winds down, the real estate market experiences a shift in activity. The decrease in competition can be advantageous for buyers who will have more room to negotiate. This can also be positive for sellers who are looking for serious buyers who are intent on purchasing before winter. Moreover, Autumn's mild temperatures make it ideal for property viewings and show days.
Winter
During winter, the real estate market experiences a significant decrease in demand, making it an opportune time for buyers to find good deals. Colder months deter many people from engaging in the hassle of moving, resulting in low-demand periods which can create favourable conditions for buyers. Sellers, faced with limited interest and fewer offers, are more inclined to negotiate and offer substantial discounts. In fact, buyers may find themselves highly sought after by sellers during this season, presenting potential advantages for those looking to make a purchase.
Spring
Following the downturn in winter, spring brings new growth and opportunities to the real estate market. Spring marks a time when potential buyers are motivated to intensify their search for a new home. With schools soon to close for the December holidays and pleasant weather enticing people outdoors, the demand for properties increases. This surge in buyer activity creates a good environment for sellers, allowing them to command higher prices and potentially receive multiple offers.
Understanding the nuances and idiosyncrasies of each season can influence your success when it comes to buying or selling. However, navigating the complexities of the market requires expertise and insight, making partnering with a property professional a must. Contact one of our dedicated agents here.
Author: Chas Everitt