Real Estate Seasonality

Watch on your mobile device >>

Just as the amusement parks begin to change their summer schedules into the less frequently operating weekend-only days, we begin to see many industries prepare for the new season around the corner. When it comes to real estate, however, particularly real estate in Myrtle Beach, seasons have little to do with the actual outcome for sellers (and buyers). How can this be? Well, we all know and recognize that perception is reality. But the truth is that the actual reality of what goes on in the various seasons is quite different.

Consider this: When talking about income-producing second homes like the ones prevalently located in our resort community, there may be certain times of year where an owner may be less inclined to sell. But at the end of the day, there is no real difference in the proportion of sales to inventory, relative to the different seasons. During the busy spring season, sure there are more buyers out there – and many of them are eager to get into a property that will soon after begin to yield some big returns on their investment. But along with the increased buyers are increased properties for sale on the market. Conversely, come fall and winter seasons fewer buyers are vying for fewer properties.

The only real reasons that a seller may change their timing are based on whether or not there will be any income generated from the property in the interim. For this reason, sellers may be less inclined to list right before the busy tourist season and in the same way, they may a bit more inclined to list their home in the fall. Their concern at that point would be the number of months they would need to carry the property without any income until the following spring.

This would be the only real semblance of seasonality in our marketplace. Otherwise, we are looking at a fairly level ratio of sales to inventory – regardless of the time of year. In terms of demand, we do see increased demand but not by too much of a margin as compared to other seasons. From the seller’s perspective this does not translate into a huge advantage of selling in the spring versus fall season.

Fall 2012 – A Strong Market for Sellers

This fall season of 2012, however, we have a unique situation. There are two additional factors that influence our marketplace. First, we are facing a presidential election – leaving some uncertainty for consumers as to what to expect come January 2013. In an effort to circumvent some of the potential impact, people are buying and selling. Also, the Fed is working hard to keep consumer confidence up as a front during the election year.

The second reason selling during the next few months is a good idea is that interest rates are still phenomenally low. Since there is no way to tell when they have bottomed out until they actually start climbing up again, selling now makes sense since there are many buyers eager to take advantage of this opportunity. With rates as low as fewer than 3% on some loans, this is an unprecedented opportunity for buyers and they will buy from the inventory that is out there.

To find out your options as a seller or a buyer or for any other real estate related inquiries, I invite you to contact me today at 843 251 2693 or via email at greg@gregsisson.com.