The real estate industry thrives, and sometimes struggles with, seasonality. It’s an industry that relies a lot on supply and demand. Depending on the location, weather, and market conditions, it’s harder to buy/sell homes at different times of the year, particularly wintertime.
Though Alpharetta’s weather is manageable year-round, it doesn’t change the fact that seasons throughout each year affect home value, as much as 10% in some cases. Why does seasonality in the real estate world mean so much?
What Factors Determine Seasonality in Real Estate?
Weather, of course, is a determining factor. But, its impact is lessened depending on where you’re based. Take states like Arizona or Florida, where the weather is good year-round. People will move from colder regions like the Northeast to buy homes in those states during the warmer months. Or they invest in a second home in those areas.
However, a major determinant of seasonality in the housing market is timing. Crucial times for families like the school year for children and the holiday season are far from ideal times to switch neighborhoods. For families with children, it’s hard to pull a child from school and move them somewhere else. Moving is an eye-opening experience for adults, let alone children who are still trying to get used to their surroundings. As a result, parents typically wait until a school year ends to buy a new home, either in the spring or summer.
While moving between November and January might attract some serious buyers, it’s not an ideal time to buy or sell a home. Even fewer people move during Christmas time because people are dealing with enough family obligations and don’t want to add the logistics of a home move to those obligations. Plus, renovating during the winter can be nightmarish due to the weather. And winter is considered the off-season for contractors.
Seasonality for Buyers and Sellers
For buyers, you’re at least not worried about facing too much competition if you’re looking to make a downpayment on a new home. People are more aggressive with their purchases (and renovations) in the summer months than they are between November and January. Winter is a low-demand season, so you can feel more comfortable knowing you won’t have a bidding war to contend with whenever you’re ready to make your move.
By contrast, sellers will have more challenging times attracting interest from the housing market because, as mentioned, families are wary of family obligations and weather during the holiday season. However, as a short-term initiative, you could lease or rent your home in the interim to others until you’re ready to sell it outright. If you are selling your Alpharetta home, there are notable ways to stage it to any prospective buyers when you’re putting it on the market.
When you’re trying to assess the seasonality in your market, have a good talk with one of our agents. We’ll help you determine the viability of buying or selling during a low-demand season and provide you with marketing metrics that let you monitor any noticeable fluctuations and patterns within your area. Get in touch with our team today, and let’s help you figure out some things!