Most people understand that the rate of sales in any real estate market changes throughout the year, but did you know it was possible to use the seasonality of home sales in order to forecast your local expectations?
By measuring the seasonality of home sales each year, we can identify the times of year where the most homes sell.
In fact, I have measured the seasonality of home sales in Tallahassee from 2002 through 2011, giving us enough data to thoroughly examine the home buying trends in the Tallahassee real estate market.
Seasonality Of Home Sales Graph
The real estate graph above shows that 57% of home sales close in Tallahassee between the months of March through August, meaning that only 43% close from September through February.
If you want to sell a home in Tallahassee, you can take this to know that home buyer activity is "hottest" from February through July (30 days prior to closing period).
By understanding the seasonality of home sales, prospective home sellers can evaluate their position more accurately.
Case Study: Using The Seasonality Of Home Sales
As an example, imagine you are trying to sell a $250,000 home in Tallahassee. You first take a look at supply and demand for housing, specifically in your price range and your specific part of the Tallahassee real estate market.
From that information, you determine that the past year recorded 171 home sales in your price range. You can then determine that roughly 15 will close in March (and therefore receive contracts in February), 14 in April, 17 in May, and 19 in June.
If you have your home on the market, in this price range, and do not have a contract by the end of May, you must understand that it is likely the market will begin slowing and fewer homes will sell each month.
Recommendation: When it comes time to interview agents for the job of selling your home, you can ask questions about their knowledge of the seasonality of home sales in your market area to determine if they are truly up to speed on current real estate market conditions.
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