There are so many variables including seasons, holidays and time of year that affect each local real estate market. In Canada we probably witness seasonal effects more than other areas of the world so people often group ups and downs each year with the seasons, ie. spring real estate season being the busiest. It’s important to understand there are other variables, unrelated to the season, that affect each market. Buyers and sellers need to understand these variables to make their best decision buying or selling a property.
One thing that determines consistency in a real estate market is the local economy. Not just the state of the local economy but the depth and diversity. Residents of small markets feel the impact of economic variables greater than a larger more diverse market.
What seem to affect a market most are things that happen consistently each year, like the start of the school year or time before and after Christmas. However winter also plays a role. Most people would prefer to move before it’s cold and snowy. The chart below shows the spring months being the busiest for real estate sales. This is probably because it’s warmer and easier to move but also because buyers want to be in their new home before schools start and before the snow arrives.
Knowing the best time to sell is very important and its determined by a mix of variables and your sales goal/plan. If you are only planning to buy you you’ll plan differently than if you need to sell your home prior to buying a new one.
Knowing the market is much busier in the Spring makes it a great time to sell. If a seller understands general buyer behaviour they can plan a strategy positioning their home to sell at the most opportune time.
There are so many variables that influence each real estate market. Knowing how the market changes each year is important but knowing how it can affect pricing and sales numbers is more important. You can earn more for your home with an intelligent plan and the same holds true when buying.