Does Market Activity Fall With Temperatures?
It’s that time of year again. As the leaves and temperature falls, autumn is definitely in full swing. What else is falling? You guessed it: Fairfax and Arlington County market sales activity. As seen in the below two charts, both Fairfax County and Arlington County are experiencing the usual seasonal decrease in the number of homes sold. This trend typically continues until mid-January before we see the tides turn and sales begin to increase. So what does this all mean?
If you’re a home buyer, you’ll probably notice that homes are not selling as fast as they were just a few weeks ago. Furthermore, as market activity decreases faster than new listings hit the market, the net result is that the number of active listings (or simply the number of homes on the market) goes up. That means if you are shopping for a home, you are probably already seeing that inventory has increased. Moreover, you are also more likely to negotiate favorable terms on a house you do like since there is a lower probably of engaging in a multiple offer situation! Think about it…because there are fewer buyers actively shopping for a home this time of year, your competition is less.
If you’re a home seller, your key to success in selling your home in this cooler environment has to do with one simple thing: pricing. The greatest factor in achieving your goal of selling your home quickly this time of year is to price it right. Remember, there are fewer buyers on the market and more homes. What will make your home stand out more than any other factor is to competitively price it.
While summer proved to be a seller’s market, this trend isn’t necessarily over. However, as fall kicks into high gear and with winter right around the corner, the tables have begun to turn and buyers are more likely to find themselves falling into a great deal on a new home…at least for now.