Does Real Estate Slow Down When School Year Starts?
When Does the Housing Market Slow Down?
Most people agree that spring and summer are the ideal times to buy or sell a home. With back-to-school time upon us, we wanted to know, does the new school year affect the real estate market overall? It does, among other things.
Is Spring King?
While the real estate market is active all year long, the market does fluctuate along with changes in mortgage interest rates and housing availability. Some feel these fluctuations, are, however, based on the season. Typically the spring is the busiest time of the year for real estate. The moderate weather means that you won’t be sweating up a storm when you search and ultimately move. Additionally, home curb appeal is at it’s highest as there’s more sun and blooming flowers that can increase the look and beauty of a home. Also, parents look to move in the spring so that their kids have the summer months to adjust to their new area before school starts.
Does the Market Fall in Fall?
In spite of this, many real estate agents report seeing an uptick in the market at the beginning of the school year. One reason for this is that parents have more time on their hands, since they’re not running around with their kids as often as they are in the summer months. Also, next to the summer, moving in the fall is least disruptive to a child’s schooling and social calendar.
There are many other reasons to buy in the autumn. Many people are on vacation during the summer, and there tends to be renewed activity in things such as the real estate market after Labor Day.
For starters, September and October are the time of the year that people start to think about year-end tax benefits. Owning a home can bring significant benefit in terms of tax return dividends. Remember that mortgage interest and property taxes are deductible from your gross income. Also, if you pre-pay some of the interest before the due date of the first payment and if you can close the loan before the end of the year, that interest can be deducted as well. This makes the fall a good time to make your home purchase.
When you buy in the fall, you avoid the hot temps of the summer months and the deep freeze of winter. Indeed, bitter weather conditions contribute to a heightened real estate market in the spring, and similar weather conditions make the fall a good time to buy as well.
Even though there may be more listings in the spring, the demand for housing is still very high in the fall. While there are often many window shoppers in the spring and summer, buyers and sellers are usually very motivated by the time fall comes around.
Also, buyers tend to benefit from the vast array of listings in the fall. Between September and December, it’s possible to visit several open houses in a single day and listings tend to be updated more frequently
Fall Buying Tips
Because of the competition and shorter timetable before the holidays, a buyer can often be tempted to make bids that are out of their range for fear of losing out. Learn the market and what all your options are before jumping into something that you may not be able to realistically afford. No matter the season, make sure you are buying at the best time for you and your family, and be sure that the home fits your needs.
As we’ve seen, the fall is actually one of the best times of the year to buy or sell. Yes, the new school year does affect the real estate market, but typically for the better.