Seasonality has a very real impact on the market – particularly if you live in an area that truly experiences all four seasons. House prices and the number of buyers looking for a new home can change drastically based on factors like the weather and economic patterns, according to experts at Tranio.com.
Property markets tend to mimic our planet’s orbit. The boom-bust cycles are like the earth rotating around the sun; they revolve gradually. In the meantime, down here on the surface, we experience seasons as the earth rotates on its axis. The latter also affects the property market, not to the same extent as the boom-bust cycles, but enough for statisticians to account for “seasonal adjustment” when they calculate house prices.
Weather is a surprisingly important factor for sellers as buyers hibernate during fall and winter, which is the “cold season” for the property market. In the spring and summer, they emerge once again. For this reason, weak demand deters homeowners from selling during the cold season, which in turn freezes price growth. During the hot season, demand grows once again and prices rise faster.
There are however some important factors to consider that will help you sell your house faster before the winter sets in:
- Property maintenance
It is extremely important that the property you are listing is in top shape for a viewing. This means you should take into consideration refurbishing and repairing any signs of damage, both inside and on the outside of the property. Make sure your house is well heated, airy and well lit for viewings. Bright and cozy homes never go out of style even during cold months.
- Open house days are welcome
Open house days and flexible viewing schedules are mostly welcome during fall and winter months. Weekends and daytime viewings are also highly recommended. Serving potential buyers with a warm drink can add a nice touch and make a good impression.
- Many countries currently have low interest rates
Mortgage rates in the United States are low at the moment, but are expected to increase, so those wishing to invest in real estate in the USA in the foreseeable future would do well to act now. Across the pond, following the Bank of England’s decision to cut the Bank Rate to 0.25% in August 2016, conditions are nearly perfect for first-time buyers to invest in UK property.
- Price it right
Conduct your own market research or take the advice of your real estate agent and make sure you price your property accordingly. You should compare similar properties in your area (look at size, condition, furnishings, appliances and amenities if any). Be willing to accept reasonable offers below the market price.
- 360’ view on things
Listing some year-round pictures of the property, especially if it features an outdoor space; even a small patio or terrace will do. This is something to consider as buyers will imagine themselves in the property during warm months as well. You might consider reconditioning your garden furniture as well to make them dream of that morning coffee outside.
Yulia Kozhevnikova – real estate expert at Tranio.com
About us: Tranio is an international real estate broker with a dedicated and independent team of journalists and real estate investment experts. We publish daily news, high quality analysis on foreign realty, expert advice, travel and best destinations tips, etc.