The Summer Market is officially here and with it typically comes an increase in the inventory, a slight drop in demand, and a rise in market time.
Summer Market-Expect a downshift from the Spring Market to the Summer Market.
The end of the school year has finally arrived, and diplomas have been distributed at festive commencement ceremonies. The temperature is heating up and the days are growing longer. The 4th of July is less than three weeks away, and family vacations are booked. From the pool to the beach to hiking Southern California’s many trails, summer is here along with all its distractions. Toss in the fact that everybody can walk the earth freely again now that COVID-19 is disappearing. Everyone is ready to enjoy a bit of fun in the sun.
The distractions of summer impact the housing market. The busiest time of the year in terms of demand, the Spring Market, comes to an end with the conclusion of the school year and graduations. The Summer Market lasts from the end of May to the start of school at the end of August. Summer is when active buyers are pulled away from the frantic pace of housing. Kids are home and parents are busy carpooling to camps, water parks, pools, beaches, and friends’ houses.
The word on the street within the real estate trenches is that there are already signs of the “summer shift.” A home might not sell in 4 days after being exposed to the market for only a weekend. Instead, it may take two weekends. Homes that are grossly overpriced will have to reduce their asking price. Surprisingly, 6% of the active listing inventory had to reduce their asking price over the past week. Many will scratch their collective heads and wonder what is going on in the market. The answer is simple: SUMMER. It happens every year, and it appears as if this year will be no exception.