Why November and December Are Great Months to Buy a Home.

‘Tis the Season.

The title of this post might seem a bit odd, considering that I’m always espousing on this site how our local real estate market slows down like clockwork after the end of October. It’s not just a gut feeling, either. The numbers prove it. The chart below is the number of new listings that hit the market each month last year:

I can run this chart for as many years back as I want, and with the exception of the COVID year, the shape is nearly identical every time. Home sellers have just become accustomed to avoiding listing their homes in November and December, and the reasons are well documented: shorter days, multiple holidays, and generally worse weather.

But for a motivated home buyer, the situation can be quite different, and these two months create an opportunity that may not exist during the normal buying periods of the year in the Spring and Fall for two main reasons:

Less Competition

Home sellers aren’t the only ones who check out over the holiday months. Many home buyers also put their searches on hold until the next year so that they, too, can focus on the holidays. And often, they are simply exhausted from a full year of going to open houses, reading disclosures, and writing offers.

Obviously, having less competition increases the odds of getting an offer accepted. But having fewer buyers competing for a home also decreases the likelihood of the sale price launching into the stratosphere, as it often does in a hotly contested multiple-offer circus.

Motivated Sellers

The other benefit of keeping the home search alive in November and December is that you’re likely to encounter sellers who might just be a tad more motivated to make a deal. If the prevailing wisdom is to avoid selling a home this late in the year, there may be an underlying reason why a seller would still keep their home on the market.

Perhaps they are selling their home as part of a 1031 Exchange, which provides them with zero flexibility on when they can sell their home. Or there may be other underlying reasons, such as financial difficulties, job relocation, or even divorce, which can take precedence over when the seller would prefer to list their home.

Finally, there are always a handful of sellers who have had their home on the market for an extended period of time, and they really just want to get a deal done before the end of the year. Of the 20 homes that are currently for sale in San Carlos, over half have been on the market for three weeks or longer, so there are definitely some homes that may need to be taken off the market and re-listed next year. Most homeowners want to avoid that hassle, if possible.

Your Key Takeaway.

If you’re still looking for a home in San Carlos or anywhere on the Peninsula, don’t take your foot off the gas. These two months can present you with a more favorable buying environment than at any other point in the year. The other month that meets the same criteria is July, which is a month where I’ve scored some great deals for my buyers.

Need help finding a place? Just reach out, and I would be happy to help!