One question that is often presented to our team is, "When does the spring market begin?"
To answer that question, we should first explain why people are curious about the spring market vs. the summer or fall. Typically, the spring market produces the highest sales prices of the year and the greatest level of buyer activity compared to summer and fall.
As warm weather approaches, the local inventory of homes is coming off its annual lows from December and January. Many sellers prefer to not have their homes on the market over the holidays and while winter weather can be less cooperative. At the same time, the coming warmer months bring the buyer community out in full force. Buyers are eager to secure their new home before they have to compete with the mass of other hungry buyers. Making an offer on a home in early spring allows for many families to close towards the end of the school year and spend the summer getting settled before the following school year begins.
This makes the perfect scenario for sellers: low inventory, which means less competition and high demand for homes. Selling a home is no different than selling something else; when demand is high and supply is low, prices rise.
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Prior to 2020, our historical research showed that the combination of low inventory and higher demand explained above would start in earnest in the third week in February. Then the market activity grows quickly and is robust through Memorial Day weekend. Our team has a tremendous track record for putting homes under contract in a minimal amount of days on market during this spring market window.
As with many things in the world these days, the pandemic has impacted annual norms in the cycle of real estate. This year we are seeing spring-like activity RIGHT NOW in early January! Buyer activity is very high and is being fueled by historically low interest rates and buyers wanting more space to accommodate working remotely and kids being at home for online learning. We are encouraging our current sellers to hit the market NOW or as soon as their homes are prepared for sale. We are anticipating this bull market to last for the next few months.
If you are looking to buy or sell this year, please take the time to reach out to me. I'd be glad to go into greater detail and customize a plan for your specific property and timeline! You can contact me at Jim@EricStewartGroup.com or (202) 262-2274.