The holidays are knocking on the door, which will result in a drop in both the inventory and buyer demand.
The Holiday Market
From now through the end of the year, the active inventory typically drops about 27% and demand drops by 31%.
Daylight saving time just ended. Everybody got an extra hour of sleep, but it now gets darker earlier. In adjusting the clocks in the house, it marked the beginning of a new season, a season of preparation and festivities, the holidays. With Halloween 2020 in the past, it is time to get the holiday lists in order. Many are thinking, it is just too soon. It is not “officially” the holidays until the red cups arrive at Starbucks. NEWSFLASH: they will debut this Saturday, November 7th. In the blink of an eye, 2020 will come to an end as everyone celebrates the arrival of 2021.
Similarly, this is the beginning of a new season for housing, the Holiday Market. With shorter days and all the distractions of the holidays, housing will downshift with a drop in both the supply, the active inventory of homes available to purchase, and demand, the last 30-days of new escrows. To the buyers and sellers that remain, the overall market will still feel sizzling hot, but there simply will be fewer active participants. Exhausted from politics and COVID-19, the holidays will be a welcome, positive diversion.