The real estate market is a tricky thing to understand. It can seem like small little things affect home prices and availability in large ways. Take, for example, the time of the year. Seasons have a major influence over the real estate market. As temperatures rise and the days grow longer, the market itself heats up with activity. Home prices usually increase while more people move because of the summer break and good weather. For many experts, this makes the summer (and spring) the best time to buy a home. But what about the fall? What happens when you buy a home when everything is cooling off? Well, you just might get a good deal.
Peaks And Valleys In The Real Estate Market
While the real estate market and home prices move in complex ways, the market and the seasons do have a noticeable relationship. When the weather gets good during the summer, the market becomes more active and home prices begin to rise. In the fall, however, things start to cool off, both literally and figuratively. Most people try to avoid moving in the fall. For families, moving can create chaos for children and school. Home sellers don’t have as many potential buyers. Home buyers will often have a smaller selection of options when trying to find a new house. On the surface, this may seem like a bad time to buy a new home, but you can take advantage of the cool market by understanding how the market works.
Less Supply
Supply and demand are two terms entrepreneurs and realtors like to throw around when “talking business.” They simply describe how many people want to buy a product (like a house) and the availability of that product. In housing terms, supply means how many homes are on the market at any point. In the fall, the supply tends to shrink because less people and realtors like to sell homes after the peak summer season. Many home developers can keep more homes on the market during this time since things are a bit different with new homes vs. pre-owned. Since a new home can take several months to a year to build, many people will shop around for months before making an actual move.
Less Demand
On the other side of the real estate market is the number of people looking for a home. More people means more competition. Home sellers love to have a lot of competition because it will increase the final price of their home. On the other hand, less competition means home buyers have more room to negotiate the price down. In the fall, there are usually less people looking to buy homes. This leaves a lot of room open for the few home buyers who want or need to take advantage of the slower season. While the amount of homes for sale might be smaller, the lower competition could work to your advantage.
Taking Advantage Of The Slow Down
Even though home developers may feel the fall effect of less individual home sellers, their home prices and availability are affected. This means you shouldn’t be afraid to check out what home developers have to offer during the fall. Many developers even plan accordingly and offer extra incentives for potential home buyers. On top of a better deal, you may also have a new home ready to move into once spring or summer hits. Check out what the San Elijo Hills community has to offer as we go into the fall season. Our website has all the information you need on the community and the homes we sell.