News & Updates

Four Ways the Market Changes after Labor Day

Labor Day signals more than the unofficial end of summer. The new season brings changes to more than just the weather and the leaves on the trees. Check out these 4 ways the real estate market changes after Labor Day:
  1. Fall real estate is more of a buyer’s market – That means if you’re in the market for a new home, you’re in the driver’s seat when it comes to negotiating power. The buyer’s market comes about because of the fact that most families want to be settled in their new homes before the start of the school year, meaning that home sales are more vibrant during the late spring and summer months. A smaller supply of buyers means sellers may be willing to make a few more concessions, depending on how anxious they are to sell.
  2. Vacation home sellers start to see some action – Summertime is prime vacation time in the U.S. If a vacationer falls in love with a place where they’ve just enjoyed a great couple of weeks, they might consider buying a home in the same area. And if a buyer starts looking for a vacation home in the fall, he can have it purchased, furnished and ready to go by the next spring. During the search, he’ll also be able to see what the area is like in the off-season.
  3. Prices fall along with the leaves – Most sellers offer their homes during spring and summer, when their yards look their best. If they haven’t sold it by Labor Day though, they start to rethink their asking price and are more open to negotiations.
  4. Deadlines “fall” away – If the first day of school is not the main concern of  buyers, it usually means there is no real deadline in sight. Even if they hope to be a new home in time for the holidays, it’s not as imperative as it would be if they’ve got kids and the start of school staring them in the face. The added flexibility gives buyers the upper hand. Even if they’d like the deal to close in time for Christmas for example, if waiting means they’ll get a better deal, they’ll probably wait.

Like many businesses, real estate is often season-driven. Some seasons give the upper hand to a seller and some seasons — like the fall — are more of a buyer’s market.