Here’s a wild statistic. It turns out that the week of September 22 — this very week right here — is the best time to buy a new home in the United States. That’s according to information released from realtor.com that shows 41 out of 53 U.S. markets show more inventory and less competition over this seven-day stretch. Interesting, no?
The Nitty Gritty
I wrote about seasonality recently, and there’s nothing new about the notion that people tend to list and buy homes in the spring. In the fall, families with school-age children are motivated to be settled before the term begins, which contributes to a dip in activity.
During the first week of September, across all markets, there’s some 26% less competition. At the same time, in comparison to an average week in the year, there’s also an increase in inventory by 6.1%. This is even greater in the West, which has a 29.6% less competition. New construction in the West is also booming, and it’s focused on the luxury market. That means lots of opportunity for the high-end buyer.
Less competition, coupled with more national inventory, creates this perfect storm — a sort of “Black Friday” week wherein 5.8% of national listings have price cuts. It’s an average of 2.4% under their peak prices, and it’s even bigger in the West, a market that sees an 8.6% reduction, which is 4.6% lower than peak pricing.
Wait. Does this Apply in San Francisco?
Probably! Real estate in San Francisco really is its own animal, but seasonality is alive and well here too. I’ll direct you once again to my recent post for a complete rundown about the impact of seasonality on median sales prices. As for this magical week? I’m firmly against the idea of trying to time the market, but I can offer experience and insight into selling year-round here in San Francisco. So if you miss your shot to buy or sell this week, don’t panic — just call me.