Real Estate transaction volumes follow very predictable seasonal trends. Spring is the busiest time of the year – the general theory being that homes benefit from better presentation when the weather is fine – with an increased number of homes listed for sale from August through to the absolute peak in November.
This creates a very lop sided supply issue during the year. Real Estate is a market like any other, and prices are driven by supply and demand. With more houses on the market during November and late February/March, there is more supply and buyers are spread thinner. There are considerably more buyers out during this time than in mid winter, but the buyers always come out much earlier than the influx of listings, as many buyers complain!
For those interested in real estate marketing strategy (as anyone contemplating selling should be) it is worth pointing out that this creates a very real and definite opportunity to take advantage of the natural supply and demand imbalance that occurs each year. If there are many comparable properties for sale in your area, rather than just your property, it should be obvious to anyone that this will have an impact on the number of potential offers, which in turn affects the end value.
The two best timing opportunities are late January to early February and early September. By getting organised and putting your home on the market during these periods you can beat the rest of the market and make a very real difference to your sale price. Odds are your home will be one of the few for sale in your area, and with a well managed marketing campaign you are far more likely to achieve multiple offers.
Unfortunately, there is no way to quantify the exact financial effect that the timing of your sale could have. However I know for certain that the difference between getting one offer as opposed to two or three is usually tens of thousands of dollars. On higher priced homes, differences between offers can be in the hundreds of thousands, which seems a lot to ignore!
James Copeland No.1 Individual Salesperson 2016 & 2017 Lowe&Co Realty ANDCO REALTY LTD: LICENSED UNDER REAA 2008. M 027 777 1120| T 04 382 9313 E [email protected] | W loweandco.nz