Seasonal Shifts: Normal…and Crazy-Making!

by arlene on July 27, 2017

Dear Neighbors and Friends,

5822 Ayala 15 small

It’s easy to forget that in fact every year, even during very active markets, real estate experiences seasonality. There is a significant difference in behavior between the early spring with its characteristic very low inventory, and the summer, when generally buyers have more choices, and more fatigue. You would think that as agents we would become immune to these shifts in behavior. But no, as we experience our annual summer slow-down, some amount of worrying sets in. Could this be the beginning of a real market change? Did we hit the top of the market and are beginning some decline? Probably not; I wrote about almost the same topic last year in this newsletter, and probably have for many summers. What we know is this: the basic economic factors of limited supply and high demand are still in play. And unless there’s a significant and long-term negative economic event, the wiggling we experience in the summer months is probably normal.

Make no mistake: it’s still unnerving, especially for sellers! Last month I had a lovely, updated condo in the hottest location possible: Rockridge. A combination of Fathers’ Day, a heat wave, and the Warriors’ Parade converged, and during the time that terrific condo was on the market it felt like a shift was occurring. Open houses were mostly sparsely attended, and I was hearing about the same situation at other properties. I did extra advertising, and fretted. I’m pleased to say that we received three offers, and the result was excellent and my seller is delighted. Listed at $705,000, it just closed at $803,000. Will I, and other agents, remember next year at this time that some summer sluggishness is normal? Check-in next year!

 

 

Comments on this entry are closed.

Previous post: