The holiday season is a unique time for the real estate market.
Understanding how holidays affect home sales now can guide buyers and sellers in making informed decisions if they decide to enter the market at that time of year.
I have provided detailed information to help potential home sellers whether it makes sense to plow forward or wait till the holiday season concludes:
- Historical and current trends on home sales during the holiday season.
- Advantages and disadvantages of buying or selling during holidays.
- Practical advice for navigating the holiday real estate market.
Based on nearly forty years of experience as a top REALTOR®, I can tell you that selling during the holidays is challenging. The time it takes to sell a house is typically longer during these times. Maximum Real Estate Exposure is an excellent resource for explaining home sales in each year’s season.
Let’s dive into the details.
Historical and current trends on home sales during the holiday season
Traditionally, the real estate market slows down during the holiday season. Families focus on festivities, travel and celebrations, reducing their interest in buying or selling homes. However, several factors can influence these trends.
Historical trends
- Lower inventory: Historically, fewer homes are listed for sale during the holidays. Sellers often prefer to avoid the disruption of showings and open houses during a busy and personal time of year. This reduced inventory means buyers have fewer choices, sometimes leading to more competitive bidding for the available homes. Understanding negotiating tactics is essential for sellers.
- Serious buyers: Those who do look for homes during the holidays tend to be serious buyers, motivated by specific needs such as job relocations, tax benefits, or personal timelines. This can lead to faster transactions as these buyers are often ready to make decisions quickly.
- Slower market: Overall market activity declines, leading to fewer transactions than at other times of the year. This can be advantageous for buyers seeking to avoid the frenzied pace of the spring and summer markets.
Current trends
- Digital transformation: The rise of online listings and virtual tours has changed the real estate market dynamics. Buyers can now browse homes and even attend virtual open houses without leaving their homes. This has allowed the market to maintain some activity even during the typically slow holiday season.
- Work from home: The pandemic-induced shift to remote work has made people more flexible in their buying schedules. This flexibility sometimes extends interest in home-buying into the holiday season, as buyers no longer need to adhere strictly to school calendars or office locations.
- Economic Factors: Interest rates, economic stability and local market conditions influence holiday home sales. For example, low interest rates can spur buying activity even during the holidays, while economic uncertainty can have the opposite effect.
Advantages and disadvantages of buying or selling during the holidays
Pros for buyers
- Less competition: Fewer buyers mean less competition for homes. This can lead to less competitive bidding situations, giving buyers a better chance of securing their desired property without overpaying.
- Motivated sellers: Sellers who list during the holidays may be more motivated to close quickly. They might be driven by relocation, financial needs, or other personal reasons, potentially leading to more favorable buyer terms.
- Year-end tax benefits: Buying a home before the end of the year can offer tax advantages such as deductions for mortgage interest and property taxes, which can be beneficial when filing taxes.
Cons for buyers
- Limited inventory: Fewer homes on the market may limit choices. Buyers might have to compromise on their preferences or wait until more homes are listed after the holidays.
- Holiday distractions: Festivities and travel can interfere with the home-buying process. Coordinating viewings, negotiations and other steps with holiday plans can be challenging.
- Weather challenges: Winter weather can complicate inspections and moving plans in some regions. Snow, ice and cold temperatures can hinder moving logistics and even impact the perception of a property’s condition.
Pros for sellers
- Serious Buyers: Holiday buyers are typically serious and ready to move quickly. This can lead to faster transactions with fewer delays.
- Home Appeal: Homes decorated for the holidays can create a warm, inviting atmosphere that attracts buyers. Festive decorations can help buyers envision themselves celebrating holidays in the home.
- Less Competition: Your listing may stand out more with fewer homes on the market. This can lead to more attention from buyers and potentially quicker sales.
Cons for sellers
- Lower foot traffic: Fewer people are actively looking to buy, leading to fewer showings. This can slow down the selling process and require more patience from sellers. Remember this when discussing real estate contract terms.
- Inconvenience: Managing showings during the holidays can disrupt personal plans. Sellers may have to balance holiday celebrations with the demands of selling their home. You can skip the open houses, though, as they usually aren’t worth it.
- Market perception: Some buyers may perceive holiday listings as desperate, potentially leading to lower offers. Sellers need to be prepared to negotiate from a perceived position of need.
Practical advice for buyers and sellers
For buyers
- Get pre-approved: Obtain mortgage pre-approval to strengthen your negotiating position. This shows sellers that you are a serious buyer with the financial means to close the deal quickly.
- Be flexible: Be open to visiting homes at unconventional times to accommodate sellers’ holiday schedules. Flexibility can make you a more attractive buyer and help you secure viewings.
- Act quickly: When you find the right home, move swiftly to make an offer. Motivated sellers appreciate decisiveness and acting quickly can prevent other buyers from snatching up the property.
For sellers
- Price competitively: Set a realistic price to attract serious buyers quickly. Overpricing can deter buyers, especially in a slower market.
- Stage effectively: Decorate tastefully for the holidays but avoid over-cluttering. A well-staged home can appeal to buyers’ emotions and help them envision living there.
- Be accommodating: Be flexible with showing times to attract more potential buyers. Accommodating buyers’ schedules can increase the chances of a successful sale.
Conclusion
The holiday season presents unique challenges and opportunities for the real estate market.
Key takeaways:
- Historical trends show a slowdown, but current trends indicate more flexibility due to digital tools and remote work.
- Buyers can benefit from less competition and motivated sellers, while sellers can appeal to serious buyers with fewer listings to compete against.
- Both parties should remain flexible and prepared to navigate the unique dynamics of the holiday real estate market.
Consider exploring how seasonal trends affect real estate prices throughout the year for more insights.
Embrace the holidays as a strategic time to buy or sell your home with the right approach and mindset.
