The market in Austin, as in most areas, is subject to seasonality as well as the pitfalls and advantages that come along with those changes in supply/demand. Right now is typically the time of year when I go into listing appointments and tell sellers, "If you don't have to sell right now, wait until January to list your home". I also advise buyers, "If you have the opportunity to buy right now, then you should try to purchase your home during the last quarter of the year".
It makes sense when you think about it. People are already starting to get bogged down with holiday preparation and travel. It begins around Halloween then moves through Thanksgiving then on to Christmas. The graph below (an average of sales data from 2008-2014) shows the number of pending home sales and the average sold price in Austin during different months of the year. You will see that both the number of pending sales and price go dramatically down starting in July and continue to drop heavily each month after that. They begin to spike up again in January, peaking in the middle of May. Contrary to popular belief, January, February, March, and April are the best months to list your home for sale. By contrast, the best time to buy (taking price into account) is the last quarter of the year.
If you look at the next graph (again, from data collected from sales that occurred 2008-2014) you'll see that the largest number of pending properties have historically occurred in the middle of April and declined each month after until the end of the year. This tells us that the best time to list your home starts in January and just gets better and better each month until April. Summer is still a good time to sell, just not as good as the preceding months.
Guys, I am going to keep it short this month, but the point is this: If you are thinking about making a move and you want to devise a strategic plan for buying at the best time and selling at the best time, HIT THE REPLY BUTTON on this email right now and let's set up an appointment. I will share exactly how we counsel our clients on timing this properly so as to save you the most money on each leg of the transaction.
Last month we sent out a massive email that detailed the economic forecast for the next couple of years in Austin and Central Texas. Click here if you'd like to review that report!