The fall housing market isn’t known for being as robust as the spring market, but there are different motivations that tend to attract consumers during this season, experts say.
“We’ve observed in seasonal household buyer patterns that there is a higher ratio of first-time buyers and childless couples in the fall,” says Walter Molony, economic issues media manager at the National Association of REALTORS®. “Families with children time their purchase based on school-year considerations, so they peak in the spring and summer.”
According to a recent ERA Real Estate survey, based on 30,000 of its broker and agents, about 20 percent of buyers are emotionally driven in the fall to purchase a house so that they can be in a new home by the holidays. Ten percent are motivated by tax benefits.
Sellers in the fall tend to be highly motivated too and face less competition with smaller inventories, says Shaun White, vice president for corporate communications for RE/MAX LLC in Denver, Colo.
“Some sellers will opt to lower their price in the fall because they’re afraid of missing the boat and being stuck trying to sell during the holidays,” says White. “Buyer traffic drops in the fall, too, so buyers may have less competition as well as better prices. You find motivated sellers and motivated buyers in the fall, especially as you get closer to the holidays.”
In some areas of the country, such as in Arizona and Florida, the prime selling season doesn’t even begin until the fall as snowbirds come in from the cooler climates looking for new homes, White says.
Source: “Homebuying: Fall Is the New Spring,” HSH.com (Sept. 26, 2012)