The Holiday Season isn’t historically the best for real estate. That’s usually when you see the biggest dip in sales. Apparently, people would rather be nestled around their Christmas trees, enjoying a nice warm fire than packing boxes and painting walls.
Although most people don’t like to deal with major moves during the Holidays, it’s actually not a bad time to buy or sell a house. This year has been an especially strong market for sellers, and all signs are pointing to a record-breaking 2021 Holiday Season! Fasten your seatbelts and get ready for a winter home-sale surge like we’ve never seen before!
There’s Still a Big-Time Buyer Demand
People might be sipping some eggnog this holiday season, but they’re doing it while looking at their phones and tablets to see what properties might be available. According to ShowingTime, a website that tracks the number of monthly property showings around the country, this past October maintained record high showings compared to previous years.
Typically, the showing index for the end of the year sits around 110. Last year in 2020, it was an incredible 184.5. This year in 2021, the number was down a touch, but it’s still sitting high at 175.5. That means people are still looking for their dream properties, holidays and all!
Interest Rates Are Going Up (But Not Yet!)
As most of you know, interest rates are one of the more prominent forces behind this unprecedented real-estate boom. When interest rates are low, buyers have more power behind every dollar. They can afford more house with a lower monthly payment.
Interest rates are still at a historic low, sitting somewhere between 2.5% and 3.5%. Buyers can still get a good bang for their buck, but it’s all coming to an end.
According to the Fed (and some savvy investors), it seems like the first rate hike of 2022 is coming in the beginning of the year, possibly by June. That means if you want to grab up a new house at a low interest rate, now is the time to move!
Buyers want to snatch up their dream property at an affordable price. They’re not waiting around for rates to go back up. They’re looking straight through the holiday season, ready to pull the trigger the minute something pops up.
Prices Remain at an All-Time High
On the seller side, home prices are still at a high. While that typically deters buyers, the low rates are keeping them interested. In fact, there’s a listing deficit! There are more buyers looking to move than there are houses.
But again, with the knowledge that these low interest rates aren’t going to stick around long, many potential sellers are looking at their watches and don’t want to miss the limited window to get rid of their house for a high price (and pick out their new dream home at a lower interest rate, too)!
Sellers Are Ready to List
With the high selling prices and low interest rates, sellers are ready to ditch their houses for the prospect of something new. According to a poll from Realtor.com, 65% of prospective sellers plan to enter the market this winter. Not only that, but many have even started to take steps toward listing. Of those 65%:
19% - Have just listed
93% – Have taken steps toward listing,
28% – Are already working with an agent
36% – Have researched their home’s value and others in their neighborhood
36% – Have started decluttering or making repairs
There’s no sense waiting around for interest rates to rise and home prices to decline. It doesn’t matter which side of the transaction you’re on, now seems to be the time to buy or sell. The stars have aligned, so get ready for a winter selling season like no other. There’ll be plenty of time to sit around the Christmas tree in your new dream home!
If you’re ready to take advantage of this unprecedented market and get your very own holiday property, contact me today! There are plenty of properties available on the Big Island, Hawaii. Imagine sipping eggnog on your lanai wearing shorts and a t shirt overlooking the ocean and experiencing all the lovely holiday traditions the Islands have to offer.
Aloha, and welcome to Hawaii.