Understanding trends in the real estate market is essential to success. Many people focus on the economy to determine demands in the market. However, the weather can often make the difference in selling a home quickly or waiting additional months to find a buyer. Understanding these real estate market trends can help you determine your pricing and avoid common mistakes. Here are the top three ways that weather impacts the real estate market.
1. People Are Less Active When It's Cold
One of the biggest challenges in the real estate industry is to sell a home during the winter months. People are much less active when the weather is cold, which makes it more difficult to find prospective buyers. Constantly dealing with large amounts of ice and snow makes selling a home a difficult task. Lowering the price of a home may be your best option if you are looking for a quick sale, or you can wait a few months for buyer activity to increase once the weather begins to get warmer.
2. Summer Is the Busiest Time of the Year
The summer months are always the busiest time of the year in the real estate industry. The warm weather increases social activity and boosts the chance of finding a potential buyer for a home. People are also more likely to buy a home during the summer months due to the kids being out of school and better weather for moving. Oftentimes, you get the highest price for a home at the beginning of the summer.
3. Rainy Weather Reduces Buyer Activity
Areas of the country with more rainy weather are much more challenging to sell a home compared to a place that's usually sunny. Most people prefer to stay indoors and to avoid going out to public places while it's raining. Understanding these trends can help you maintain realistic expectations about selling a home without feeling frustrated due to the lack of activity.
Finding success in the real estate market isn't always easy. Understanding how the weather impacts the sale of a home is important in helping you reach long-term success as a real estate agent. Because sales will typically be lower during the colder months, the summer is a great time to take advantage of sales and to help you find the best price for a home. Trends will vary across the country, but the weather can play a key role in impacting the real estate market.