Our Changing Sales Calendar

The rule in residential real estate has always been that people look at homes in the spring, and close and move in the summer, so that they can begin a new school year on time.  That cycle has worked well for sellers, who can then avoid fixing up or showing their properties in bad weather, so they get their homes ready in early spring, list in May, and move in midsummer. 

With fewer school-age children in the State, and more flexibility, this seasonal certainty has begun to change, especially near universities and hospitals. Those two categories work on a fiscal year, usually from July to June. They typically make their offers during the early part of the year, and get answers by early spring.  That means that, during the period when people are considering offers in and around New Haven, there is very little available and on the market.  This can lead to frustration, but it can also be good news for sellers who have their houses ready to go in late winter. 

Every year, I listen to agents say in February and March that they have nothing to show relocating families.  Every year, I tell agents to remind folks of this fact, and to get listings sooner.  Now we have proof, since we got a report of our website hits over the past 52 weeks.  Surprisingly, the highest number of unique visitors came in---drumroll, please--late January!  That continued into early March, and then settled down, before dropping to lower points in midsummer and late fall. 

So why not aim to have your property listed when the most potential buyers are looking?  We know that weather is a factor, but internal decluttering--the biggest issue for most people--can be done in any season, and why not do it when going outdoors is so much less tempting?  Internet etailing has taught us that the smartest sellers give the buyers what they want, when they want it.  In this case, that means that they'd like more choice earlier in the calendar year.  While some may be willing to wait until the traditional season, this really is a case where the early bird catches the worm!

Have Buyers, Need Listings

OK, so we officially don't know when the hot times in our market start and stop. We had a slow (weather-related) winter last year, a very late spring, then a roaring summer, which screeched to an abrupt halt in August, and never returned. Now we are seeing big increases in buyer traffic to our sites, and people looking for houses that aren't yet on the market, even though it's freezing cold and it snowed yesterday. So the market is different year by year, and can only be predicted in arrears. The real takeaway here is that buyers are out now--in early January--and we have little or nothing to show them. Sellers, here is your chance! If your home is well-maintained and well-priced, you might get your best results by listing right now. There's no need to wait until spring, when more competition gets listed, especially since Yale and Yale-New Haven Hospital make their employment offers before spring even starts. Why wait? Get a jump on your 2015 goals, and call us today!

When the Heat Goes On, the Price Comes Down

As I put on my first long-sleeve shirt of the season to go running this morning, I reflected on what the changing weather means for real estate.  Although spring is the traditional listing and buying season, based on the school year schedule, Labor Day brings a bump that lasts until about Thanksgiving.  For sellers, the first time that they think about heating a home that's empty, or one that's too big, they also begin to worry about freezing pipes, snowplowing, and all the downsides of winter.  We are not unaccustomed to getting calls from sellers, who previously had been saying that they were not in a hurry and didn't have to sell, asking why there have been no offers.  At that point, they are often willing to get serious about pricing their property to move quickly.  Of course, we remind them that they have a window before winter, which is quickly disappearing.

If you are a buyer, this is when you should be serious also.  It can take longer to close during holiday season, so don't take too long to make your offers and sign your contracts.  The end of the year is rapidly approaching.  Take advantage of this time to buy a great home at a good price with a low mortgage rate!

A Warmer Winter?

To us, a warm winter is one with a lot of real estate sales! The recent extension and expansion of the homebuyers' tax credit gives us hope for the traditionally slower months. Because of the timing on the new bill, sellers and buyers should realize that they can't wait until the spring market. Buyers who have no home to sell (usually the first-time buyers) can probably put off finalizing a sale, since the contract must be signed by April 30,2010 and must close within 60 days, by June 30, 2010.

Many of the houses listed in the so-called "spring market" are still coming on the market even into May, so it won't be possible to wait until all the possible choices are available for viewing. Of course, if a buyer also has a house to sell, he or she should get started right away, since that could take up the intervening months. In addition, people should factor in extra time for mortgage approval, as we have been finding that the appraisal process in particular is taking far longer than it did before.

All of that leads to the conclusion that buyers who wish to take advantage of the tax credit cannot risk waiting until the spring rolls around. Since sellers certainly need to start soon, that argues for a busier winter than we're used to having. Don't forget that, although the holidays are busy and it's difficult to schedule showings, many homes look their best when decorated. In addition, the snowiest and iciest months are later in the winter, so now is better from that angle. It's also good to remember that it can pay to list when there isn't much around to compete. Once others realize that time is of the essence, you can already be negotiating your sale and moving on to a new purchase.

It's the Buying Time of Year Again

Our agents have heard me say this every year, but it's time to say it for this blog: The best time to buy a house is between Halloween and Thanksgiving. Sellers are ready to sell, as they start to pay heating bills, think about plowing, and head into the holidays. Buyers are mostly settled into new homes or forgetting about buying until spring. It's hard to show houses in the winter. There's snow and ice, not to mention cold. Parking and driveways can make open houses and showings tricky. Although many homes show well when they are decorated for the holidays, most families are busy at that time of year and don't want to have to keep their homes clutter-free and ready to show. Most buildings look better in light, and there isn't much of it in the dead of winter. All of that adds up to the realization that, if you haven't sold your home within the next three weeks, you probably aren't going to sell it until the spring.

Despite that chilling thought, there are sellers who want to move at this time of year. For one thing, some have tax reasons for wishing to close before year end. Some have jobs or commitments in other places. Some are tired of the selling process, and some have another home waiting for them. Some just want to spend the winter in a warmer place. All of those people are competing for the buyers still looking when winter comes. Therefore, if you are an eager seller, you are most likely to compromise on the price at this time of year.

Buyers can capitalize on these factors to negotiate for a better price as the weather gets cold, especially if the home is empty and sellers are worried about freezing pipes and empty oil tanks, or even just heating and plowing bills. This is the time of year when a month of expenses can easily become six months of expenses, and sellers will take that into account.

If you are a buyer, particularly a buyer with cash, here's your chance! Don't waste it--buy now.