If you are looking to buy a home or investment property and are NOT concerned with getting the lowest price possible, then stop reading now…If not, consider reading the following the information and take advantage of the upcoming holiday season.
One of the most ignored aspects and/or characteristics is the “Seasonal” effect on value and supply in real estate. Even in a stable market, prices do not stay level all year. The “life” of the property values is “born” in the spring and “dies” in the winter. In the springtime more buyers compete for properties and put upward pressure on pricing. The demand continues throughout the summer and stabilizes in the late summer and early fall. In the late fall, buyers “settle in” and get ready for the holidays and winters and begin to “sit on the sidelines”, which causes the marker to “die”.
This theory/model is backed my data collected throughout the northeast, New Hampshire and specifically data tracked within my appraisal office. Our office keeps statistics on Manchester single family AND multi-family properties. Additionally, we track Bedford, Nashua, Portsmouth, Concord and Laconia. In ALL sectors, we track sales volumes and prices much lower during the winter months then in the spring and summer months. Doesn’t it make sense that prices are lower in the winter? Anybody selling in the winter months KNOWS that there are only a few buyers to compete for and that their home may sit on the market until spring. As a result, they are more motivated to “take less” now then to carry the property throughout the winter.
I estimate the difference in the Greater Manchester NH market to be to be nearly 10 percent from the high and lows during the year. What does that mean? It means you can buy a $200K house for the $190K in the dead of winter and it will cost $210K to buy that same $200K house during the best selling months.
The moral of the story… When you are out doing your holiday shopping, consider it the BEST time of the year to purchase your next property. KNOW that you have leverage and incredible buying power since most of the other buyers have hibernated in the winter. Let them sleep during the winter and compete against each other in the spring and summer months… and by the way….pay and Extra $20,000 using our example.If you have any questions regarding buying, selling, appraising, pricing or any other real estate matter do not hesitate to contact me at (603) 644-1000
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