Just like the seasons change, so do sales cycles. This year, we are seeing a vast diversion from the standard norm in certain areas.
In the past, there were usually very distinct cycles for sales. One could expect a natural slowdown during the summer (from Memorial Day — or at least the end of June — to Labor Day) because that is when folks tend to travel, focus on family, and generally relax and unwind.
After Labor Day and the start of the school season, people would resume their searches and get serious about buying and selling property again. We would see an uptick and frenzy of activity, with listing inventory increasing and serious buyers seeking to snatch up a property, whether to live in themselves or for investment purposes.
Then, once the winter holiday season commenced with Thanksgiving, Hanukkah, Christmas, and New Year’s celebrations, the sales cycle would likely dip again, only to become frenzied once more right after the new year.
As during summer, this end-of-year holiday period was traditionally a time for family, travel, social activity, or just plain relaxation, with many putting off buying and selling property for those few weeks.
The post-holiday return to work was when many people learned what their bonuses would — or would not — be. This was also when they might receive a portion of the vested stock, which would determine what they would look to buy and invest in.
Lately, however, we can throw those scenarios right out the window. There no longer seems to be any standard sales cycle at all; lines have blurred. We are seeing far busier summers in terms of buying and selling, and even during the winter holidays, deals are being pushed through. Still, it is nuanced and specific to different price and size segments.
This is neither good nor bad, but those in the sales market need to be aware that what may have been the norm years ago has now changed. We can no longer expect a complete flatline from Memorial Day to Labor Day. These once-slower turndown times are now times of opportunity.
While it is possible to time sales in the summer “off season” to capture buyers who are looking to snatch up “bargains” by racing in while others are away at play, I am instead telling many sellers to take their listings off the market and bring them back on right after summer — depending of course on their location, price segment, and market type. My rationale is that certain types of buyers will not be in the city during these hot summer months. For that market segment, fall will be far more robust.
Sometimes you can even time sales so that summer is surprisingly positive, but given the continuing high mortgage interest rates, that scenario isn’t playing out for the most part this season. Sure, there are some buyers — anomalies — who need to find a place quickly and prefer to buy instead of rent, especially since they might be able to negotiate a good price based on the seller’s anxiety about the market.
My overall takeaway is that there is no one-size-fits-all way to buy and sell right now. Some sellers may initially feel they want to push on during summer, not wanting to miss a prime opportunity to get eager buyers to their doors, while others will sit out from looking during the summer or winter holiday seasons.
Real Estate timing seems to becoming a customized approach — one that can yield well if time correctly.
