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As the days heat up, does the housing market follow suit? Summer real estate trends are partly shaped in spring’s wake: spring is the most saturated market for real estate, and it’s usual to see a little dip at the start of summer as both buyers and sellers take holidays and travel. But, the summer months are nevertheless a hot market for real estate for several key reasons. Here are 5 trends to look out for!
1. Prices drop during the summer
Since spring is such a busy season, sellers who haven’t sold by summer start to feel the pressure and get panicky, giving buyers a little more negotiating power. The dip in the summer real estate market as people go away also makes it less likely that there will be a bidding war, plus it’s more likely that sellers will settle. All those factors combine to mean that housing prices tend to drop from May - October, with almost 14% of listings getting a price cut by August. The moral of the story? Hold out until August, if you can!
2. Summer is a great time to scope out a neighbourhood
For sellers, summer is the perfect time to get a good sense of your potential new neighbourhood. Not only is it easier to get the lay of the land when the weather is nice and the days are longer, but flowers and trees are in full bloom so your future yard will be at its very best! You’ll also get a better sense of the community when the weather is nice and people are out and about, and you’re more likely to meet your (potential) new neighbours. One watch out: make sure you’re not so dazzled by the stunning magnolia tree that you miss an ugly power line or some rusty eavestroughs.
3. Buyers get a better sense of the home in summer
Visiting in the summer means you’ll get a good sense of how your future home holds up in the warm weather. Your home inspector will take stock of all of these things on purchase, but a head start never hurts! You can gauge how well the air conditioning works when it’s hot outside, make sure all the windows open, and check for energy efficient heating/cooling appliances to see which you’ll need to replace. Make sure to watch for signs of dampness or foundation issues, though. The warm weather might hide them, but you'll notice come fall.
4. Families are more likely to sell/buy in summer
Expect to see more people looking for family homes in the warmer months. People with kids don’t want to uproot them in the middle of the school year, so they’ll hope to move in the summer to get a fresh start in September. Plus, families have more free time in summer for both looking and eventually moving. Thanks to all those families, studies show that some of the busiest moving times of the year occur during the summer, with June being one of the busiest months.
If you have kids, you can bring them with you to viewings and make the buying process a family affair. Some realtors don’t want little ones underfoot, so make sure to ask beforehand, but bringing your kids means they can get a sense of their new house, pick their bedroom, and they might even spot some issues that you missed.
5. People start fixing up their ‘Fixer Uppers’
If spring is the hottest time to buy a house, summer is when people take possession, start assessing their new properties, and figure out what needs to change. If you sold a house in the spring, now is a great time to recommend a design-build company that can go out and assess the space to help your clients start making their reno dreams come true.