The days of experts recommending that homeowners wait until the spring to list their home have come and gone, and lifewise, prospective home buyers no longer have a reason to fear that they will not be able to find their perfect home if they decide not to wait until the housing market explodes with listings in the spring. The new normal in the real estate industry is that even in the dead of winter, you will likely be able to buy and/or sell a home with relative ease. There are specific details you must take into account when you participate in the winter real estate market though, whether you are preparing to buy, sell or both. However, understanding winter housing market dynamics is necessary to be successful in the market this time of year. This includes everything from being in touch with your local housing market’s trends, to winter home preparations if you want to get the most bang for your housing buck.
How is the Housing Market Different in Winter?
Until recent years, it was common to see a significant slowdown in the real estate market during the winter months. This is due to numerous factors. From both a buying and selling standpoint, many people feel like coupling a house hunt or selling with the holiday season would present a stressful situation. Other people believe that home staging and upkeep is too difficult to maintain during the winter months, while a lot of people would prefer not to conduct their house hunt while it is chilly outside. All of this means that historically, inventory of available houses tends to decrease significantly during the winter months. A decrease in inventory often means that prices will go down slightly, something that can scare off potential sellers.
That outlook has changed lately, because over the past several years, the real estate market has stayed relatively strong throughout the winter months, with prices remaining stable. With no significant drop in prices or inventory, both buyers and sellers have less of a reason to shelve their moving plans until warmer weather returns. When there are still plentiful properties available, the demand from buyers can remain healthy throughout the year. Some people may even perceive that there are increased opportunities during the winter months. This is because both buyers and sellers who are in the market throughout the winter tend to be even more motivated to close a deal. These are quite often the people who have a pressing need to relocate and are serious about their home search or sale.
Tips for Selling a Home in the Winter
Proper home staging is always one of the most important factors when you are selling your home, but this can be a little bit trickier during the winter months. Because the days are shorter and often darker and drearier during the winter, you’ll want to pay extra attention to the lighting in your home to make sure that it still feels warm and welcoming. Add lamps and battery powered candles wherever you need some additional warm lighting. Overhead lights can be overpowering during the day, and you may not be able to rely on natural light streaming in through the windows. Still, you should leave blinds open to maximize what light does make its way inside your home. Experts often recommend against leaving real candles burning during showings, both for safety reasons and because not everyone may enjoy the scent you have chosen, battery powered candles can add just the right amount of warm light while being scentless and safe.
Ignore the gas and electric bill for now, and leave your heat running at a comfortable temperature even when you will not be home. No one enjoys a chilly house when they are touring homes, and if it is too cold inside, prospective buyers may actually wonder if there is something wrong with your HVAC system. If you have a fireplace, avoid using it for heat while your house is on the market, as some people are allergic to the smoke and ash left behind in the air, and others simply do not care for the smell.
Decorate modestly for any holidays that occur during the winter. Now is not the time to pull out all of your seasonal china and mantel decor. Make sure what you do put out is neutral and reserved, and free of overly personalized touches. This is not the year to display all of the Christmas cards you have received, nor should put out the handmade ornaments from your childrens’ elementary school years.
Make sure you are staying on top of any maintenance and inspections that might be needed more during the winter, such as monitoring the health of your HVAC system. Severe winter weather is rare in the metro Atlanta area, but we do see ice and snow on occasion. If temperatures will be dipping below freezing, make sure there is no standing water that could freeze and become a tripping hazard on driveways and walkways.
Buying a Home in Winter
Believe it or not, purchasing a home during the winter months actually has certain advantages over doing so in any other season. For starters, you will likely face less competition. Recently the housing market has been tipped in favor of sellers, and buyers have been up against stiff competition when placing their offers. During the winter when fewer people are looking for a home, you might find it easier to avoid being outbid and having to make several offers before successfully completing a purchase. You may also find that negotiations are easier and go more in your favor when you purchase this time of year.
Winter sellers are often highly motivating, selling their homes only because they really have to, such as for a job relocation. Otherwise they would likely wait until the typically hot real estate seasons of spring and early summer. A motivated seller will be more likely to accept your initial offer and agree to any repairs that your inspection uncovers are needed. Speaking of inspections, make sure that you specifically inquire if your inspector is checking the effectiveness of the heating system, the quality of the home’s insulation, and that special attention is taken to any drafty areas in the home.
Another advantage that you will have when you are house shopping during the winter months is that you will get to see what your potential new home will look like in arguably the worst of conditions. The trees will be barren of leaves and the skies may be gray and dreary, with little natural light floating into the homes you view. If you are able to fall in love with something even in these conditions, you can be more confident that the home you have found is truly the one.
No Time is a Bad Time Anymore
The old school of thought, that buying or selling a home during the winter is a bad idea wasn’t wrong, its just that times have changed somewhat. While it is still true that the majority of home sales are closed upon during May, June and July, the difference is not as significant as it used to be. Parents are still beholden to school schedules, and many people shy away from moving during the school year and having their kids change schools mid-grade. Those will always be valid reasons for waiting until the spring to begin the buying and/or selling process. But for everyone else who aren’t worried about school aged children changing schools, more people than ever are defying conventional logic and jumping into the real estate market any time of year that suits them.
This is thanks in part to the changes in the way we live and work that began during the Covid pandemic. Many people transitioned to working from home rather than commuting to an office, and they found that they are now able to work from anywhere. This means that moving is now not as linked to job changes and relocations. If someone is already working from their home office and they find that they would like to relocate, there is no need to wait for other details to fall into place, such as a job search or change of offices.
Also spring from the pandemic is a prevailing feeling that life is short, and one should do the things that make them the happiest. For some that may mean downsizing from a large home an moving into an urban condo. For others it might be mean saying goodbye to the downtown hustle and bustle and heading to the suburbs. If a move is needed to make one’s life happier, that move can happen at any time of the year. So just like our priorities change, so does the real estate market.