Do Home Prices Cool off After Summer?

Do Home Prices Cool off After Summer?

By Amanda Ventura

Autumn isn’t just a time when the leaves fall – home prices do, too!

A recent NerdWallet study suggested fall is one of the cheapest times to buy a home in the country’s 50 most populated cities. The study found that home buyers can save around 3 percent — or $8,300 — on the average home price between summer and fall. Even better –waiting until January or February will see a drop of nearly 9 percent around the country. Homes sell about a month slower during these months – dropping from the summer heat of 73 days to 104 spent on the market – giving buyers a bit more leverage.

Now, for the bad news; the study and local realtors say Phoenix is exempt from these seasonal bonuses.

There are many reasons to not be discouraged by this news, insist realtors. One is positive growth.

Arizona has one of the fastest growing communities in the country with Surprise,” says HomeSmart real estate professional Kathy Anderson. “All homes in family communities sell very quickly and without any fluctuation between seasons.”

The only exception to this rule is the luxury market, says HomeSmart real estate professional Allen Studebaker.

The only seasonal change that is significant to homebuyers and sellers is the sale price per square foot,” says Studebaker. “The luxury market goes relatively flat during the summer months. Most luxury sellers – meaning more than $750,000 – pull their homes off the market for the summer and re-enter in October or November.”

Price drops look like $4 to $5 per square foot, except when you take the luxury market out of the equation. Then, the change in price per square foot only drops by about 50 cents between seasons. This is why price drops are deceptive in Metro Phoenix.

The Valley is continuing to experience job and population growth, says Studebaker. This, plus the ability to sell sunshine 300-plus days per year is easy for sellers – especially when the winter weather sets into areas like the Northeast and Northwest.

Anytime is a great time to buy in Phoenix,” Studebaker says. “It’s just better to look at homes in the winter months with cooler weather versus the dead of the summer.”

It could be worse; The NerdWallet study found home prices actually surge in neighboring Las Vegas by 3 percent.

While that $8,000 may look nice from afar, the fact of the matter is that grass will always be greener in Phoenix.

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