The most common question I get asked in real estate is "How's the market?" There are so many factors that play into our ever changing Silicon Valley market, and it's interesting to see what happens as we approach the holidays.
So, what happens to the market in December?
The answer is…not a whole lot. Year over year, the market is always slow moving once we approach the holidays. From just before Thanksgiving to right after New Year's Day, the market goes through a bit of a standstill. The reasoning is pretty logical. People are traveling, kids are out of school, there are several holidays in quick succession, and it's cold (yes, that last one is a real factor). With so much happening in the midst of winter, buying and selling is not on most people's minds.
December is a fantastic time to be a buyer because there's less competition and at times better deals. If a house has been sitting on the market since early November, that means you have a better chance of getting that home at or below list price come mid-December. This paired with less buyers in the marketplace makes for solid buying conditions.
With the recent market shift that happened this past summer, there's never been a better time to purchase a home. Prices have leveled out, the market has corrected itself, and interest rates are still very low. There are tons of buyers waiting on the sidelines right now, hoping for even more of a downturn and better deals. The reality is we are not likely to see prices decrease much more and interest rates are certain to increase. Right now there's very little competition because most buyers are waiting until after the beginning of the year to resume their house hunting. With all of these factors at play, I'm strongly encouraging anyone who is even thinking of buying a home to start the process.
Plus, who doesn't want a brand new home in time for the holidays?
For a high level overview of the home buying process, check out my home buying infographic