Seasonality and Cyclicality of the Market

Our market naturally moves in both seasons and cycles.

Much like most things in life, real estate moves in both seasons and cycles. Let’s begin by talking about the seasonality of our market.

This is especially important right now because we are heading into a season that is traditionally slower. There are other factors, of course, that are slowing things down, like interest rates, inflation, and the stock market, but this period is just naturally slower. However, believe it or not, sales tend to pick up a little bit during the holidays since children are out of school and people need to move for work reasons. Further, you’ll see another uptick in the new year with people moving for their New Year's resolutions.

From there, the market is a little quiet, with people going out of town for spring break, but it explodes again after that. This is a time when the market has more opportunities for buyers but is also a little more competitive.

Finally, we head into the summer, and while many people tend to move during the summer, the high heat and children returning to school can close that season early. 

"We are heading into a season that is traditionally slower."

So we are here in the Fall, and that is a season that is especially good for investors. Home sellers are typically more willing to negotiate in this season, particularly those who listed in the summer and have sat on the market for a little bit.

This is the seasonality of our market. The cyclicality is a little bit different. When we say that the market is cyclical, we mean to say that the market goes through seven to ten-year upticks, followed by a one- to two-year correction. That’s what we are seeing right now, where even though there are other factors like interest rates driving things down, it’s also a natural slowing of the market. In fact, the correction is even a little bit overdue, with all of the unnatural stimuli we’ve seen in the market. 

What does this mean for you? You should give me a call or an email, and we can discuss your particular situation. I’d be delighted to help you out.