Is There Seasonality in Real Estate?
We often hear Real estate agents spruiking “Spring Season is Selling Season”. But is there really a seasonality to real estate? Having been in the industry for well over 12 years I would any real seasonality has pretty much evaporated.
Spring Time is selling Season!
There used to be a tendency for both Sellers and Buyers to hit spring and get itchy feet. Of course, Buyers could wake up and go out looking straight away where Sellers usually needed to prep their homes and so they would be a month behind the increase in buyers. That’s why we always used to encourage our owners to start earlier, beat out their competition and nab the benefit of that buyer increase – it’s all about timing.
But over the years I have noticed the arrival of Spring has increasingly held a lesser influence on activity. Buyers tend to be active more evenly throughout the year than in time past, not so much in a season.
Look at the time of year, the seasonality
What I would say if you are a Seller, is not to look at so much the time of year, but look at your home and what season it better suits. Is it a Summer home, Winter home or an all-rounder?
Does your home have attributes better suited to a season that will hold more value? Or will these attributes be lost, and there too your potential value? Let me give an example.
Let’s say your lovely home has air conditioning throughout with an open plan living area, all tiled flowing to the outdoor entertaining area with sparkling inground pool. Now imagine its 33 degrees and 90% humidity – a typical Brisbane summer.
As an agent, I would pick the open home times to be close to the hotter time of the day. I would crank that air-con so when the poor, sweating buyers arrive they are met with a magnificent blast of cool, refreshing air. The home is a sanctuary from the heat. Then they walk outside and see the glistening swimming pool, togue out wondering if it would be weird to ask if they could jump in, even just for a short time?
This is a summer home. Right there you have absolutely made the most of the home’s attributes and by doing so, increasing the value of your home in the Buyer’s mind.
Now imagine it is the middle of winter, 12 degrees and cold. The buyer doesn’t care about air conditioning. The tiles are cold on their feet and uninviting, if not uncomfortable. They look at the pool and go ‘great, something else I have to spend my weekends on cleaning’. All value has been lost
Of course, this can also happen with a Winter home, with a sunken lounge, heavy carpet and fireplace. Not appealing in summer when it’s 32 degrees and stinking hot, right?
Most homes in Brisbane are usually Summer homes or all-rounders. But that doesn’t mean you shouldn’t take into consideration the attributes of your home and decide what time of year your home’s attributes have a better return.
If you don’t have that luxury, there are tactics a good agent can adopt, but ultimately picking the best time of year can mean a considerable difference in what your home will return.
Written by Shawn Kristofer
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