When is the best time to buy or sell a home in the greater Seattle and Bellevue area? I get this question a lot, and it’s a really good questions because each buyer and seller wants to know what time of year is best for them. In today’s video, we are going to look at the factors when trying to time our market. Let’s get into it.
We hope you had an excellent Thanksgiving! We’re posting this video on Black Friday, the day MILLIONS of Americans make some kind of purchase, because they are looking for a deal. The question is, what kind of cycles occur in the real estate market on an annual basis, so you too, can get a deal? Let’s examine 3 factors to consider when timing the market.
Number 1, Seasonality. Seasonality plays a large role in the activity of our market. At the start of each year, the market is typically slow. Everyone is recouping from the holidays, and let’s face it, Seattle is pretty gloomy this time of year. Usually starting in March, our market comes alive. In fact, March, April and May are the busiest months for our region’s real estate sales as the number of new listings and buyer activity peak. In the summer months, the number of transactions usually slow down and us brokers often call this the summer doldrums. People often have plans, might be on vacation and kids are out of school. Then, after Labor Day we frequently see an uptick in sales in September and October before slowing down again during holidays and winter months.
When you look at this graph, you can see the typical rhythm of sales in our market. For buyers, the slower periods can be great times to buy since there is less competition and often more room for negotiating. Just keep in mind there is usually less inventory to choose from. For you sellers, the spring and early fall can be advantageous to list since there are more buyers in the marketplace. However, since there are also usually more homes for sale you tend to have more competition from other sellers.
The second thing to keep in mind when timing the market is the market at large. Even though there is a natural ebb and flow to real estate throughout the year, powerful market forces such as supply and demand overshadow the seasonality and can throw a curveball. These other factors include interest rates, affordability, jobs, recessions, period of hyper growth and so on. This will effect a home’s value, days on market and your specific success in the market more than the time . As an example, if you’re a seller and it’s 6 months until the busy spring market, you might think it’s a great idea to wait until that time to list your home. But, if the market drops in value over the next 6 months, did waiting until the spring market turn out to be such a good idea? Of course not. So as a buyer or seller, make sure you look at the macro landscape data as well, not just the seasonality of the greater Seattle.
And the third thing to examine when timing the market is your specific situation and your needs. This should surpass everything else. Don’t let the time of year or market conditions hold you hostage. For instance, if you’re a buyer and you find this great property that checks all the boxes, you can afford it and you love the property, don’t necessarily wait for the “buying season”. And same thing goes for sellers. Examine what’s best for you. Your specific property might look it’s best during the winter months, when the leaves have fallen and it displays a beautiful city view.
There is always a bit of guess work with trying to time the market. Homes sell throughout the entire year. When it comes down to it, be educated about the market. But ultimately, your personal timing is most important. Buy when are ready. Sell when you are ready.
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