END OF YEAR EXPECTATIONS
Seven more weeks until the slowest season of the year starts, the Holiday Market.
The supply of homes available to purchase will plunge as many unsuccessful sellers throw in the towel to enjoy the holidays and hold off until the Spring Market. It is hard to imagine that there are that many homeowners lingering on the market, unable to sell, given how hot housing is right now. Yet, there are 513 sellers today, 24% of the current active inventory, who have been exposed to the market for more than two months. Also, November and December are when the fewest number of homeowners opt to list their homes for sale during the year.
With the inventory dropping, there are fewer available options for buyers to choose from. Many buyers also place their home shopping desires on hold while they enjoy the holiday season. As a result, demand, the number of new escrows over the prior month, plunges. From 2015 to 2019 demand sank by 35% to its lowest levels of the year by year’s end.
Until the start of the Holiday Market in mid-November, it remains the Autumn Market. Autumn is when both the inventory and demand drop slightly. There are still quite a few more homes that come on the market during October compared to the average between November and December, 55% more. Demand will remain elevated. Today’s incredibly low 3% mortgage rate continues to fuel demand. Rates are not expected to change much for the remainder of the year as well.
ATTENTION BUYERS: The incredibly crazy, Hot Seller’s Market persists and that will not change for the remainder of the year, even with demand plunging during the holidays.
Remember, it is not just demand that is plunging, the number of available homes to purchase will be plunging as well. To wait until later in the year for a “deal” during the “slowest time of the year for real estate” simply does not make sense. The temperature of housing will not feel much different in December compared to today.
ATTENTION SELLERS: It really is the last call to cash in on the 2021 housing market and find success.
Sellers who are clearly overpriced will run out of time and run into an end of the year with drastically fewer participating home buyers due to the holidays. The time to be accurately priced and taking full advantage of maximum market exposure is right now, today.
Click on the image below the Read the Orange County Housing Report.