As the real estate “off-season” approaches, many homebuyers and sellers are left wondering what this means for them. Whether you’re looking to buy your first home or sell your current one, understanding the seasonal trends in the real estate market can offer you a significant advantage. We’ll dive into some valuable insights that could impact your home-buying or selling journey.
Historical Trends in Southern California
One of the most noticeable facts about the real estate off-season is that the median sales price falls 80% of the time in Southern California. It’s fallen 28 times out of the past 35 “off-seasons.” While the frequency is somewhat less in Orange County, this is an important fact to consider whether you’re buying or selling.
The Average Price Loss
On a collective level in Southern California, the real estate market experiences about a 3% dip in prices during the off-season. The most significant drop was in 2009, with a staggering 24% decrease in median sales prices. Knowing this can help you strategize whether you’re a buyer looking for a deal or a seller trying to get the best price for your home.
What to Expect This Year
With much higher interest rates this year, we anticipate another slower off-season. In 2022, Southern California experienced a 7% dip in prices. Given the current market and global conditions, we might not be surprised if we see something closer to a 10% drop this off-season.
If you’re in the market to buy a home, be prepared for a tighter inventory. There will be more than 30% fewer homes coming to the market during the off-season. This makes it crucial to have a solid strategy in place if you’re looking to buy.
If you plan to sell, how you market and position your property will matter more during these several months than at any other time during the year. The agent you choose to represent you can make a significant difference in your selling experience.
Understanding these seasonal trends can help you make informed decisions, whether you’re buying or selling. If you have any questions or would like personalized advice on how to navigate this off-season, feel free to reach out to us.