How the Seasons Impact the Real Estate Market

As you are building your real estate career, it is important to understand the ebbs, flows, and nuances of the real estate market both in the United States and in your community specifically. While the performance of the national economy can greatly impact the real estate market, there are some consistent, annual, and seasonal factors that may affect your local buyers and sellers as well. HomeServices Real Estate Academy, we pride ourselves on educating our students about all aspects of the real estate industry, and we think that understanding seasonality is a key component to success.

Why Does Seasonality in Real Estate Matter?

In real estate, seasonality is the idea that your real estate market, including the prices of homes and the sheer supply and demand of homes on the market, may fluctuate based on seasonal factors such as holidays, weather, and more. As you work toward obtaining your real estate license, understanding these seasonal factors will help you be successful in real estate in your community.

Different Seasonal Factors in Real Estate

While different areas of the country may have niche seasonality factors, there are some common seasonal factors that appear nationwide.

1. Cooling weather can mean cooling market.

One of the nationwide trends in real estate shows that, as the weather gets cooler and we approach the winter months, the real estate market tends to slow down. While this effect may take place for a variety of reasons, it is important as a real estate agent to recognize the potential for slow business during the winter months.

2. The holiday season leaves little time for buying or selling.

In the winter, many people are incredibly busy with holiday obligations, work deadlines, and more end-of-year logistics. This often means that even people who may be looking to make a move in the future are not looking to do so during the holiday season, slowing down business.

3. Families may be less inclined to move during the academic year.

If your clients have children, they are significantly less likely to move during the school year. In addition to the potential of changing school districts, the school year comes with many activities, obligations, and restrictions that parents may not have to navigate to buy or sell their home.

4. Moving is less appealing in the winter.

While colder weather in general tends to slow the housing market, many people take seasonal weather into account when it comes to moving. If you practice real estate in a place that experiences cold autumns and even colder winters, you may experience fewer people looking to move during these months.

5. Those looking to move in the summer may try to purchase a home in the spring.

On the contrary, with summer being the most popular time to move because of seasonal and academic factors, the demand for housing may rise significantly in the spring. Whether the supply is adequate for the demand, you can experience a lot of offers and negotiations this time of year.

Contact Us

As a real estate agent, understanding how your buyers and sellers may be affected throughout certain times of the year can help you set yourself up for success. HomeServices Real Estate Academy is accredited by the Kentucky Real Estate Commission (KREC) and the Kentucky Commission on Proprietary Education (KCPE) and we are committed to providing you with the best education and tools to be successful as an agent.

Contact us today to talk to our team about getting your real estate license! We proudly serve Lexington, Georgetown, Versailles, Paris, Nicholasville, Richmond, Harrodsburg, Frankfort, and Winchester, Kentucky.