What can a buyer or seller expect from our market as we approach the holiday season?
We’ve had a lot of clients asking us lately whether they should buy or sell now or wait until the new year. I want to share a few pros and cons from each scenario and tell you what I would advise one of my clients to do.
If you’re a seller thinking you want to sell now, there are a couple things to keep in mind.
First, a lot of the buyers who aren’t motivated to buy during the holiday season will exit the market. That said, the buyers who stick around and continue to look for homes have many reasons for sticking around, and they want to buy before the end of the year. These buyers that stick around are motivated. Although you may deal with fewer buyers looking at your property, the ones who are looking will be submitting stronger offers.
Second, just like a lot of unmotivated buyers are leaving the market, a lot of unmotivated sellers are leaving the market too. This means you’ll have a lot less competition, which will increase the demand for your property and the odds you can sell for a great price.
If you’re a seller thinking you want to wait until the new year to sell, we can only speculate as to whether prices will be higher in the new year, but the way things are going in our market, prices are still going up, so you might get a higher price by waiting. However, everybody else who decided to wait until the new year to sell their home will be listing at the same time you do, which means you’ll face a lot more competition and the demand for your home will be lowered.
As you can see, there really is no “right” or “wrong.” It all boils down to what makes the most sense for you. Now, let’s shift the focus to buyers.
If you’re thinking of buying now, you’ll have less competition due to the exodus of unmotivated buyers. However, you will also have fewer options to choose from as far as homes go because of the exodus of unmotivated sellers. The homes that will still be on the market, though, will have motivated sellers behind them, so you may be able to sneak in and get one of those properties for a better price.
If you’re thinking of buying in the new year, you’ll face more competition from buyers re-entering the market, which might lead to multiple offer situations. However, you’ll also have more homes to choose from because more sellers will be entering the market as well. If the market continues to go up, prices may be higher.
Whether you’re a buyer or seller and you want to act now or wait until the new year, it’s important to know that it’s almost impossible to time the market perfectly. The best advice I can give to you or any of my clients is this: You need to figure out what makes sense for you. Look at your situation and understand why you’re selling or why you’re buying and put together a strategy with your agent.
If you have any more questions about whether now is the time for you to buy or sell a home or you have any other questions about our Orange County market, don’t hesitate to reach out to me. I’d be glad to help you. Until then, happy selling!