Technology TransactionsSelling Homes During The Holidays
Every year, at about this time, I am often asked by home owners if it is prudent to put their home on the market during the upcoming holiday season, or if they should wait until after the first of the year. My answer, always, is that they should definitely consider putting their home on the market, because November and December offer a higher exposure ratio compared to other months.
November and December have the best exposure ratio of any other months of the year. It’s true that February and March produce the highest amount of home sales, but when you compare the percentage of sales to the total number of new properties that come onto the market, November and December prove to be extremely good months to sell your home.
The key to this analysis is understanding the real estate definition for “new on the market.” New on the market refers only to the first thirty days that a home is on the market. It is commonly known that this period of time is the most crucial for any home sale. The reason for this is that new properties receive the most exposure during the first thirty days, so there is a greater chance of making a sale.
The real estate industry measures home sales throughout the year and one of the ways they do this is by using an indicator that measures the percentage of sales to the total number of new properties on the market. November and December have an indicator that is 75% higher than the rest of the year. In other words, these two months have the highest amount of sales relative to the number of new homes that are listed on the market. What this means for the home seller is that if they list their home during November or December, they have a much greater potential for exposure within the first thirty days, than they do during the rest of the year.
A large part of what contributes to this high rate of exposure is that there are fewer homes listed during November and December, resulting in fewer “new on the market” properties. In other words, there is not as much competition for sales, so homes have the potential to receive much more exposure than it would during the spring and summer months when there are significantly more homes on the market. Furthermore, low interest rates are currently driving numerous home buyers into the market, further increasing the exposure—and potential sale—for current listings.
This year, more than ever, I’m encouraging home owners to consider selling due to the very advantageous conditions that currently exist for home sellers in the more affordable price ranges. Historically low interest rates have brought record numbers of first time home buyers into the real estate market over recent months and this will only continue as long as rates remain low.
It’s true that the months following New Year"s are traditionally the most productive for the real estate market and many real estate professionals encourage their clients to wait and sell during that time. However, it’s a common misconception that the holiday months are an unproductive time to sell, especially considering current market conditions. When you combine the high exposure ratio for homes that are currently for sale with the surplus of buyers that continue to come into the market, this year’s holiday season is an extremely advantageous time to consider selling.
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J. Lennox Scott is the president of John L. Scott Real Estate. You can visit his Web site at
www.johnlscott.com.