winter market

Is it turning to a Buyer’s Market?

by John Rice

Short answer: It depends on the house.

Long answer: I read an article this morning asking this same question. It had all the usual data in any article related to the nationwide real estate market. Average days on market, Average sale price compared to previous years, the number of listings compared to previous years……blah blah blah.

None of that really matters. Why? Because no two houses and no two markets are the same. There is no average house. Average means a composite of all data. It does not look at each house individually. Do you know who does look at each house individually? Buyers do.

A buyer looks at every house within their budget and decides which one they want to buy. Let’s say they look at 10 houses. They are only buying one so they pick the best one. Do you know what else happens? Usually every buyer in that same price range also picks the same best one. That means we have multiple buyers competing for the best houses on the market. Meanwhile, the rest of the houses sit there and dilute all those averages so the media can make illogical conclusions to share with the world.

I have been a realtor for 20 years. It was a Seller’s Market when I started. Then a Buyer’s Market. Then an EXTREME Buyer’s Market. Then a stable market. Then it slowly built into the strongest Seller’s Market ever. Now, more than ever, we sort of have two markets. If you want the best house in the best neighborhood, you better be prepared to go over the list price and be flexible on anything important to the seller. If you are not picky, make a low offer on one of those houses that nobody else has wanted. After 20 years of this, I can tell you that when you go to sell whatever house you decide to buy, picking the best one will always have been the wisest decision. The best houses will always be worth the most, be the easiest to sell, and will have the broadest appeal.

When is the best time to be a buyer or seller?

by John Rice

One of the first things I do every day is look at ALL the new listings, look at ALL the price reductions, look at ALL the new pending sales, and look at ALL of the new closed sales.

Want to know some things I have noticed over the years?

In the spring, the number of houses selling quickly is higher than any other time of year.  More buyers are out.  There are usually fewer listings early in spring since most sellers want those first few warm weekends to work on curb appeal.

In the summer, we start seeing more new listings.  Sales remain strong.  Overpriced houses get overlooked.

In the fall, we see fewer new listings.  The frenzy slows down.  There are fewer multiple offers and fewer houses sell the first day or two on the market.  In an appreciating market, I also see houses that have been on the market for a long time begin to sell.  Why does this happen?  They were the overpriced listings in the spring and summer.  With prices going up, they have appreciated into their list price and now are competitive with newer listings.  Also, in an appreciating market, most sellers get greedy.  They want what their house is worth PLUS $5-10k.  Yesterday’s overpriced listing looks really good to a buyer compared to a brand new overpriced listing.

In the winter there are far fewer new listings but this is the best time to be a buyer.  Most sellers have been beat into submission by the buyers of prior seasons and are the most realistic they will ever be.  For a seller, the benefit is that your competition is typically just the other listings that are left over from spring and summer.  You stand a better chance of catching a buyer.

So, when is the best time to be a seller or be a buyer?

If you are a picky buyer looking for something specific, spring and summer because you will have more choices.

If you are a buyer who isn’t too picky, then fall and winter may get you the best price.

If you are a seller with a house that has been a buyer’s second or third choice all spring and summer, then your best bet is the fall and winter.  The reason your house never made it to be somebody’s first choice was because there was always a new listing that lured the buyers away from your house.

If you are a seller with a nice house and are willing to price it appropriately, then you will sell quickly any time of the year.  Your house will always be somebody’s first choice.