Housing market activity fluctuates throughout the year, but according to research conducted by the National Association of REALTORS® (NAR), there are seasonality trends1 that influence when individuals decide to purchase and sell homes. While some trends differ by region, NAR research finds that peak real estate season across the U.S. spans from late spring to early summer, particularly the months of April through June. What makes these months the peak season in real estate? Let’s dive into some of the top reasons for buyers and sellers.
FOR BUYERS
· Favorable weather and longer days: The sunny skies, warmer temperatures and longer days make it easier, and allow more time, for buyers to travel to open houses and explore neighborhoods. The weather also provides the perfect opportunity for buyers to view the outdoor features of a home with ease, and sellers to showcase features like a deck or pool. Additionally, it is easier to conduct a thorough inspection of the home and plan a move free from weather hazards.
· More inventory: During the spring and summer months, there is an increase in housing activity, providing a wider selection of homes for buyers to choose from. With more options, some homes may sit on the market longer, which could mean sellers may be more willing to negotiate on price, closing costs or repairs. It could also mean that buyers are more likely to see prices drop for sellers to stay competitive.
· New home builder incentives: New home builders often offer incentives during the spring and summer months, such as price reductions and discounts, closing cost assistance, mortgage rate buy-downs, free design upgrades or credits to attract buyers.
· Optimal timing for families: Spring and summer align with school vacations, providing families with more time to search for homes, finalize contracts, complete the closing process and relocate with minimal disruption to the academic year. This approach allows children to settle into their new homes before the upcoming school year, which can be especially important for those transitioning to a new school.
FOR SELLERS
· Enhanced curb appeal: Making a great first impression is important when it comes to selling a home. Enhancing the curb appeal with a maintained lawn, freshly painted exterior or decorated porch, can create a positive impact, attracting more potential buyers and possibly increasing the perceived value of the home. Spring and summer offer the best time to enhance curb appeal, as favorable weather conditions allow for gardening, landscaping and other outdoor improvements.
· Time to tackle home improvement projects: Spring and summer offer great opportunities for sellers to tackle home improvement projects before placing their home on the market. Optimizing the condition of a property can attract more buyers, increase the home’s market value, and may lead to a quicker and more profitable sale.
· Increased buyer activity: Motivated by milder weather and the end of the school year, the housing market experiences an influx of buyers. According to the latest NAR seasonal research1, the daily average of existing homes sold during peak season (from April to June 2023) was 16,540, compared to 11,380 in the slower months (from December 2023 to February 2024).
• Higher house prices: During spring and summer, house prices tend to rise due to increased demand and more competition among buyers. Based on research conducted by ATTOM Data Solutions (ATTOM), a company that provides real estate data and analytics, spring – specifically, the month of May – is the most profitable time to sell a house. After an analysis of 59 million homes over a span of 13 years (from 2011 to 2023), ATTOM found that homes sold in May saw an average premium of 13.1% above market value.
Spring and summer’s vibrant real estate activity is driven by a combination of favorable weather, increased daylight hours, and the alignment with family life and school schedules. These factors create an ideal environment for both buyers and sellers to engage in the market, making them peak seasons in real estate transactions. Understanding these seasonal trends can help you make more informed decisions, whether you're looking to buy, sell, or simply stay informed about market trends. When you’re ready purchase or sell a home, Old Republic Title is here for all your title and closing needs. To find an office near you, visit oldrepublictitle.com/locations.
1 Copyright ©2024 “Navigating the Housing Market: A Seasonal Perspective.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. April 2024, https://www.nar.realtor/blogs/economists-outlook/navigating-the-housing-market-a-seasonal-perspective