Off-Season Real Estate Market, a Plus for Buyers?

Off-Season Real Estate Market, A Plus for Buyers?

I often get asked if there is an advantage to purchasing a home in the beginning of the year before the spring market kicks in.  The answer is, typically, YES.  Timing is everything in real estate sales.  This chart, by the NAR - National Association of Realtors, shows the median days that real estate stayed on the market broken down by month.  The first quarter shows that homes lingered on the market more than the rest of the year.  The longer a home sits on the market, typically, the more motivated a seller becomes.  This motivation can translate into lower prices and more favorable terms for buyers.  Perhaps you can get a seller to help with your closing costs, or purchase a home warranty or help you with your owner’s title expense.  These concessions are more difficult to get when homes are selling quicker.  

Fewer buyers mean less competition

Remember your Economics class 101 class? Less demand means lower prices.This is what can happen in the off-season months.  As the market approaches spring and more homes start to pop up for sale, more buyers get off the fence and jump into the market. And just like that, sellers start to get multiple offers and homes start going pending more quickly and prices increase right along with it. As a buyer you lose bargaining power when you compete. 

Your Realtor has more time

Realtors are less busy this time of year. This means buyers can receive more personalized attention and quicker responses to their inquiries, making the home-buying process smoother and less stressful. During peak marketing times Realtors are in high gear and the less professional agents may make you feel rushed because they are themselves rushed.  

As a local Realtor active in the Dayton, OH real estate market for many years now I’ve been through a lot of these yearly cycles. The market has always had seasonality to it but I can say since Covid that ushered in  this strong Seller’s Market, the seasonality is less profound. That said, the opportunity of making a home purchase in the off- season can still reap rewards for the savvy buyer. Reach out anytime to discuss what all this means for you on either the buy or sell side.