As a seller, the end of summer/beginning of fall is one of the best times to put your home on the market, as that’s when luxury buyers tend to come back into town and start their home search. As a buyer, you should consider the effect of a hot seller’s market on your budget and adjust your expectations accordingly.
Expectations for new home buyers
The busy season creates challenges for potential Paradise Valley home buyers, but you can always find some good opportunities. You’ll undoubtedly face higher prices or be required to present offers with few contingencies, and this may keep you from receiving help with closing costs or yield unfinished details in your new home.
You should plan your home purchase as far in advance as possible and time in with the slower months of the year. While inventory in the fall and winter may be a bit sparse, prices will be better. Consider browsing homes in the summer and officially closing on a home in the fall. Regardless, knowledge of market trends, an educated real estate agent, and ample time will save you money when entering the Paradise Valley market as a home buyer.
Understand market trends
May, June, July, and August make up 40% of the annual home sales volume. An average of 2.1 million transactions occur throughout this time (National Association of Realtors), leading to more demand and higher prices.
The market’s busy season begins in earnest in March but picks up in May and June, with sellers netting a 9.2% premium in June and 7.4% in May. The season starts to wane by August when seller premiums dip to 5.8%.
The market will continue to cool as the year goes on. The worst months to list your home are October and December when the seller premium is only 3.3%. December’s fall-off can be attributed to the holiday season, people taking vacations, and a low inventory of homes. All of this makes it prudent to list your home as early into the summer as possible.
Get to know Paradise Valley
While market trends tend to vary by season, they tend to differ based on specific geographical location. For example, in the Phoenix area, home sales usually pick up in March, hit their peak in May, and continue strong through summer. So if you were to list your home in May, and it took two or three months to sell, you would still be in the window for a higher seller’s premium.
Despite the sweltering triple-digit heat in Paradise Valley, summer is still ideal for selling Paradise Valley real estate. Along with the statistics mentioned above, the nicer weather and the start of a new school year increase buyer demand. Even daylight savings time positively affects Paradise Valley’s real estate market, as the sun sets much later, and more showings are possible each day. The more people that view your home, the more offers you can expect.
Competitive real estate
The selling season drives up prices and creates a more intensely competitive market. When you list your Paradise Valley home, your real estate agent will be able to put together a list of comps (comparable home sales) that they will use to help set your asking price at a competitive level.
With a seller’s market and more buyers, you’ll likely receive multiple offers on your home. Another likelihood of the busy season are bidding wars, where several buyers try to one-up each other’s offers. This can lead to receiving a much higher purchase price for your Paradise Valley home than you may have expected.
As summer winds down, the market begins to wane and dips into the slow season. The average seller’s premium drops to 4.7% in September, almost half of what you can make in June.
As a home buyer, these considerations will likely lead you to purchase later in the year. When entering the market as a buyer during the busy season in Paradise Valley, you can expect to spend more and receive less.
When deciding the best time of year to list or purchase Paradise Valley real estate, consult with an experienced real estate agent from The Schrand Team. If you plan to buy or sell Paradise Valley real estate in 2021, contact The Schrand Team for additional tips on the local market, trustworthy negotiating, and a smooth closing process.