4 Ways the Real Estate Market Changes After Labor Day
If you are looking to buy or sell a home this year, then before you start your search or list your home, you need to know that the time of year can have an impact on your success. In one of the most glaring examples of this theory, the real estate market changes pretty substantially after the Labor Day weekend.
Like the heat of the season, summer’s frenzied buying season starts waning once fall sets in. Many home buyers put their home searches on hold until spring because they don’t want to get involved in a move with school starting and the holidays on the way.
But, that doesn’t mean opportunities aren’t available in the fall. In fact, if you know what to expect from the fall market, you’ll stand a better chance at making a great deal. Here, we look at the four key ways the market changes after Labor Day, and why the holiday is such a pivotal one for the country’s real estate market.
#1: Home Prices Start Falling
In the fall, the leaves aren’t the only things falling. In most cases, homeowners who listed their properties in the summer with hopes of taking advantage of summer’s sell-off but weren’t able to close their deals will usually re-evaluate their position after Labor Day. This traditionally results in sellers lowering their prices, and being more accommodating in terms of negotiations after the three day weekend.
#2: The Market Turns Into a Buyer’s Market
In the summer, a seller can essentially set their asking price, compare offers, and select the best one. But, with the number of home shoppers dropping off significantly after the holiday, the real estate market suddenly turns into a buyer’s market because those buyers who are still shopping suddenly have more negotiating power thanks to the decline in competition.
In most cases, the fall real estate market is very opportunistic for singles, young professionals, couples without children, and retirees. Since these buyers don’t have children, they don’t have to worry about things that can’t be changed, like school start dates.
#3: Fall Is a Great Time to Shop for a Vacation Home
If you vacationed somewhere this summer and you are thinking about buying a vacation home in the area, then the best time of year to go shopping for one is after the Labor Day weekend. Not only will you be able to take advantage of the reduced prices, less competition, and better selection, but you’ll also be able to buy your home and have it fixed up and furnished by next year’s summer vacation season. Instead of paying money on rent someone else’s home, you can enjoy your very own vacation home!
Or, if you buy a vacation home in the fall in a part of the country with a strong winter vacation season, then you can quickly turn your second home into a nice income-generating opportunity by renting it out to skiers and winter enthusiasts. Very quickly, your vacation home will start paying for itself.
#4: The Fall Buying Season Doesn’t Have a Deadline
Most buying seasons come with some sort of deadline. For instance, most home buyers who select a certain neighborhood because of the quality of its school systems have to be in their homes before school begins. But, if you don’t have kids and you’re looking to buy in the fall, you don’t have to worry about such deadlines. This means your fall buying season can extend as long as you need it to be to find the home of your dreams at the price you want.
Sure, most people want to be in their homes for the holidays, but for some, even that isn’t a concern. The post-Labor Day real estate market offers good things to those who wait, so if you can wait to buy until after Thanksgiving, you stand to find even greater deals.
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