The Season for Real Estate Bargains

We believe it is important to keep our clients informed about opportunities in the real estate market.  We have one to share with you today.

The residential real estate business is seasonal with periods of high or low activity and specific months that can favor buyers or sellers.  The current fall season spanning Labor Day to Thanksgiving is generally an active time for real estate.  But after Thanksgiving, the local market dramatically slows.  

It should be no surprise that the time between Thanksgiving and New Years Day is the slowest of the year.  Preparing for the holidays, celebrating them, and spending time with friends and family are the focus — not buying or selling real estate.  

But for opportunistic buyers, the holiday season can potentially provide a chance to get better deals than might be otherwise found in the market.  It’s a period of low inventory, but those sellers whose homes remain listed through Thanksgiving are often resigned to the notion that their homes may not find buyers until the New Year.  Such sellers may be open to a lower offer in the late November / early December timeframe.  Over the years, we’ve presented countless offers to sellers just after Thanksgiving with the message “I know our offer is a bit less than you might be expecting, but our buyer is ready to act before the end of the year.  Perhaps it’s worth considering if it enables you to enjoy the holidays knowing that your home is under contract.”  Not all sellers will be flexible, but we’ve found that some will jump at the chance to get a sale done.

Market statistics illustrate this increased price flexibility.  Over the past three holiday seasons, the average home sales price in Northern Virginia was $596,467 during the October months, $583,000 during the December months, and $600,000 during the February months.  Those December prices are 2.3% and 2.9% less than the average October and February prices, respectively.  This may not seem like much, but on a $600,000 house, this equates to savings between $14,000 and $16,000.

Low inventory is the main challenge with this strategy.  The inventory pool tends to get bought down prior to Thanksgiving and many homeowners interested in selling wait for the New Year to take action.  Buyers seeking lots of choices will likely be disappointed. But investors who focus more on value than aesthetics or personal preferences may be more successful in a search during the holidays.

We expect to have strategy conversations with several buyers in the coming weeks.  If you, your friends or colleagues might be interested in exploring this holiday season strategy, we encourage you to get in touch.