Settlements Peak In June – Buyers Are Looking Two To Three Months Prior
One of the more common real estate terms heard at this time of year is “The Spring Market”. This refers to the period of year in which real estate activity peaks. The Spring Market precedes the actual coming of Spring on the calendar, and while it does not have a fixed start date it generally gets underway in late February. This year with the mild winter we experienced, the Spring Market has arrived earlier than usual.
There is actual data behind this phenomena. Regardless of the state of the market – up or down – sales activity follows a predictable yearly pattern.
The chart above tracks the number of monthly settlements in Nether Providence Township and Wallingford over the years 2009 through 2014. Over 35% of the settlements for any given year occur in May, June, and July – with June consistently being the most popular month for settlements, at just over 15% of the yearly total.
February represents the bottom of the yearly cycle at just over 4.5% of yearly activity, and settlements at this time of year represent buyers who were in the market and went to contract during the holiday period from Thanksgiving through Christmas.
Given that the average time from contract signing to settlement is two months, it means that now is the time buyers are out in the market looking for a home. The timing and peaking of interest and activity at this time is no accident. A majority of home buyers base time their purchases to coincide with the school year calendar. They prefer to move into a new home during the early summer, and be in place prior to the start of the new school year.
Just as advertisers will pay big bucks to advertise during peak events such as the Super Bowl to reach the largest audience, it makes sense as a seller to have your home on the market when it can be exposed to the largest possible number of potential buyers, which is right now!
Are you considering putting your home on the market? I would be glad to meet with you and provide you with a free Market Analysis of your home.
Wallingford Real Estate – Wallingford, PA 19086
