Any real estate market is comprised of many moving parts. These days we’re seeing some mixed signals when it comes to the market’s current state.
While spring saw a big price jump on top of already-significant appreciation over the past 12 months, we’re now seeing a plateau in median home sales prices. In addition, there are significant increases in interest rates, but they’re still historically low. Buyers are burning out but the market’s still in a frenzy, and supply and demand statistics still indicate a very strong seller’s market as well as increasing number of expired listings, which may indicate that sellers are pushing their asking prices a little too high for the buyer’s palate.
Let’s look at the luxury-home segment for a minute. April and May are the big months for accepted offers on higher-priced homes, as well as September and October. These four months make up about 14 percent of total home sales. We see the big luxury slump in August and December, when their percentage of total sales declines to about 10 percent.
And this significant decline is one factor that reduces median sales prices during summer and winter holiday months. Seasonality is a big factor in median prices rising in spring and autumn – and likewise, declining in summer and winter. It’s best to keep in mind, though, that in real estate the long-term is far more important than short-term statistics.
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