Everyone has this idea that the real estate and title business come to a screeching halt during the holidays. With a reporting background, I felt compelled to do a little research to see if it’s true. Obviously the closing industry and what we do as a lien search company are totally dependent on the real estate market, but there are several reasons we can all be encouraged about this holiday season, no matter what role you play.
Here are four reasons why the winter real estate "slow down" isn't so bad after all...
1. Sellers this time of year are the most motivated
Trulia published an article in Forbes saying sellers who listed property during the holidays are anxious to unload--and buyers can really take advantage of that. The story states that these driven sellers will drop prices between $3,000 and $12,000 during the holidays and on average, homes were priced 5% under market value between Thanksgiving and Christmas.
2. People looking to buy right now are serious
If they’re taking a break from the holiday merriment, that means they’re probably not messing around or likely to waste anyone’s time. The means these shoppers are more willing to make a deal, according to Realtor.com. Motivated sellers and serious buyers = winning combination.
3. The uncertainty of a rate-hike has buyers under pressure right now.
Right now buyers are feeling a crunch to jump in before the inevitable rise of interest rates. Long we’ve enjoyed a rate under 4%, but that could be ending soon. An article in the Washington Post says there was a 20% increase in mortgage applications this Fall over last--a trend expected to flow into winter.
4. There is a real estate "Black Friday," it’s just not when you think.This same article reveals really interesting data that shows one of the busiest days people shop for homes online is actually December 28th-- smack-dab in the middle of the holidays! Which is funny, because the slowest day of the year is just four days before on December 24th. (But WHO could shop for houses when there are presents to be bought/wrapped, cookies to be baked, holiday meals to be-prepped..?)
These reasons go to show that things are happening right now. We just need to be sure we don’t get too set in our ways and meet these opportunities head-on! We’re ready! Are you?
Here are some other resources to share with your clients about selling during the holidays: