“We’ll wait for the Spring Market”. It’s said so frequently one would think the only market to sell a home in is the Spring Market, but truthfully, that’s just no longer the case. Think about it. Prior to the “dot com” boom, Real Estate simply wasn’t a digital experience. The MLS was a printed book accessible through your Realtor in their office. You’d have to get dressed, leave the house, and shovel out your car to go shopping in the winter time. Now you can do it all on an app from the comfort of your snuggie.
Let’s talk turkey (no pun intended).
Here’s a snapshot of the last 12 months of inventory for York County, Maine.
You can see there’s a sharp rise in inventory from May to June with an average of 400-600 new listings each month. November to February trends around 200-300 new listings each month, the slowest new-inventory season of the year.
“See! Spring is the best month!” … or is it? Look more closely at the grey trend line, it’s kind of hard to see (I apologize, I didn’t pick these colors!). That trend line almost perfectly follows the “New Listings” trend line November to February. Pending Inventory is nearly equal to New Inventory, which tells us the inventory is moving almost as quickly as it hits the market in these months.
This chart tells us the market will consume inventory up to about 450 listings a month, so when our market has less than that number of homes for sale, inventory turns over in that 30 day timeframe. In months like June through October where inventory exceeds demand, we see a surplus of homes, which means the sexy houses go super fast, and the ones who don’t really shine tend to sit. Sellers have the most leverage when they have less inventory competition in the market. This is an especially useful tactic when your home isn’t the most perfect, modern home for the market.
”What about prices? Won’t I get more in the summer than the winter?”
While, yes, we see a dramatic increase in list to sale price, according to the chart, it’s actually only about 4% at its highest point. At an average pricepoint of $350,000 for a single family home, you’re talking an additional $14,000 max. It’s not chump change, but it is about the equivalent of 7 months of mortgage payments for the 7 months you waited to sell. So….. it’s a wash.
Now, let’s get to the mushy bit, because I think this is something special that we do here at Allen Realty Group. How many homes have you seen on the market with all caps descriptions “boasting” the home’s “ample” this and “well-appointed” that? You know, the houses that “WILL NOT LAST”?
That’s all well and good if you’re a robot shopping for a home, but you’re not. You’re a human, and humans are emotional creatures. We’re looking for home, our home. The place we’re going to raise kids or puppies (you do you, boo). Where we’ll host family get-togethers and friendsgivings, making memories for years to come. That’s home. Home is emotional.
What’s all this have to do with selling in the winter?
Winter is the most magical time of the year. People decorate with lights, neighborhoods are aglow. Imagine driving down a street all lit up for the holiday on your way to tour a home. There are snowmen in yards, sleds by the porch, and big bowed wreaths on front doors. How inviting does that community feel to you as a buyer?
When you enter, the home is tidy, they’ve got a wax burner of “Douglas Fir” refreshing the air and little tea lights casting a warm glow on the fireplace mantle. There are decorated cookies and wrapped presents, festive greenery on porches and the perfect white blanket of newly fallen snow hiding everything underneath. Winter is magical, and that magic – the holiday music, the lifted spirits, and the emotional connection to others at this time of year – makes for a great home-selling experience. People are feeling more generous and everything is romanticized.
Now let’s talk facts, because while the romance is all well and good, we can’t sell a house just on that.
Now that we know winter means less inventory, what strategies should we consider?
- Price is still critical. An overpriced home will sit on the market, regardless of market conditions, so price off market research, and let the competition do the rest
- Presentation is key. Your home is already beautified for winter, imagine how lovely your professional photos will come out! (pro-tip, if your agent isn’t using a professional photographer, there’s no excuse. Call us. It makes all the difference and we NEVER compromise on that).
- Timing is everything. Your agent will advise on the best days to premier your home online, and when to open it up to showings.
- Availability, make it work for you. The biggest pushback we get in regards to listing during the holiday season is around showings. You don’t have to list your house and constantly show it. A good agent will consult with you to set up windows and open houses around your schedule. We’re people, too. We know how much effort goes into getting a home market-ready, and frankly, it’s exhausting to keep your house looking like a furniture showroom. With a solid marketing strategy, our team can often get your home under contract with only a couple hours of showings, which means you can get back to your normal life sooner.
- Closing during the Holidays… you don’t have to. While we can surely use the holiday spirit to market and show your home, there’s nothing that says you have to sell your house in 30-60 days. As a Seller, you have the ability to set your timeline, so long as you do so in advance. Between November and December, we’ll lose about 5 business days to holidays, meaning banks aren’t closing deals. A longer timeline for closing is expected.
What you need to know about Buyers in a winter market is that they’re often more serious. Think about it. If you could shop for a home when the weather is beautiful and not blizzarding, wouldn’t that be preferable? We get less looky-loos in the winter time and more serious shoppers. You may not get 100 people through your open house, but we can guarantee, the ratio of qualified and ready buyers is much higher.
Buyers shopping in the Winter may also have a more urgent need to buy. Perhaps they’re relocating for a new job in the new year and need to line up housing, or maybe they’re taking advantage of end-of-year tax breaks. Whatever their motivation, we know if they’re looking for a home in Maine or New Hampshire in the winter, they’re seriously ready to buy.
So what are you waiting for?
Let’s take advantage of the winter market and help you upgrade or downsize to the next home in your future!