As the weather heats up every year, so does the housing market. Summer real estate markets are typically faster, more competitive, and higher-priced than cool winter markets.
In the article, we’ll show you what to expect from the summer housing market and how to capitalize on it.
Summer Real Estate By the Numbers
Here’s what happens to the real estate market every summer based on data from PropTech giant, Redfin.
More Home Sell
Far more homes sell every summer than they do during the winter months. In January of 2021, only 437,347 homes sold nationwide. But in June of 2021, 733,876 homes sold. That’s an increase of 68.7%! For real estate professionals, these additional summer sales mean more work and higher income.
Homes Sell Faster
Every summer, the pace of the market picks up, with homes selling faster than in the winter months. In January of 2021, for example, the average American home took 34 days to sell. But in June and July, homes were selling in just 15 days.
This is valuable information for buyers and sellers. Sellers need to be prepared for a quick sale. They’ll need to have a new home or a temporary place lined up. And buyers need to be decisive. If they wait to make an offer on a home they like, they could lose the house to another buyer who makes an offer first. Real estate agents need to educate their buyers and sellers to make sure everyone is prepared to move quickly during the fast-paced summer season.
More Homes Are Available
Each summer, more homes come on the market. In 2021, homes available on the market jumped by 32% from February to August.
This is great news for buyers because it gives them more options. For sellers, more listings on the market mean more competition. So sellers may need to take extra care to make sure their home shows its best. Listing agents also need to make sure their listings are competitive. Advise your sellers on ways to highlight the home’s best features, insist on professional listing photos, and take the time to post virtual tours online.
A recent ATTOM analysis found that homes listed in May sell for a premium of 12.6% above market value on average. This means sellers can typically expect to make more by listing in May (which would lead to a sale in June or July) than any other month.
Redfin data backs this up. In January 2021, the median sales price in the U.S. was $329,176, and by June, the median was up to $384,533. Part of this increase was the rapidly rising home values. But we know part of this was the seasonality effect since prices dipped back to $376,339 by January 2022 before rising again in the spring.
This seasonal price jump is excellent news for sellers. Buyers will need to be prepared to spend a little more in the summer months.
What Makes the Summer Real Estate Market Special?
There are three main factors driving the hot summer real estate market.
Summer is the best time for families with kids to move. They typically want to move while the kids are out of school so they can be established in their new home before the next school year starts.
From Halloween through New Year’s, we’re all in holiday mode. With all the extra hustle and bustle of the holiday season, sellers don’t want to keep their homes show-ready, and buyers don’t want to spend time looking at houses. And no one wants to move during the winter holidays. So we wait for spring and summer.
Longer daylight hours mean more time for house hunting. Plus, houses typically show better in good weather. Winter weather can make homes look dreary, but sunny days show houses in the best light.
How to Capitalize on the Summer Real Estate Market as an Agent
The summer is prime selling season for real estate agents. Here are some ideas for taking advantage of these hot market conditions:
Get your real estate license (if you don’t already have one). You must be licensed by your state before you can represent buyers and sellers. In most states, you just need to complete an online real estate course, pass your real estate exam, and pay reasonable licensing fees with your license application.
Get your business tools and systems established and ready to handle the extra work.
Ramp up your marketing efforts in the spring.
Advise your sellers to list in mid-May for maximum potential.
Plan to work long hours during the summer. You can save your time off for the slower winter months.
The busy summer real estate season provides increased opportunities for buyers, sellers, and real estate agents. With a little planning and hard work, agents can potentially complete enough transactions and earn enough income during the summer months to take the winter season off completely. Or you could keep working to build your business stronger for the next summer season. That’s the great thing about a career in real estate: you get to design your life! If you don’t already have your real estate license, enroll in your online real estate course today.