How to Go with the Flow of the Market

Tactics for Buyers

Buying a home in the Northern Californian region requires an understanding of the seasonal shifts in the housing market, but did you know there is also a weekly flow to the market?

You’ll need to understand that there are two cycles – both a yearly cycle and a weekly cycle – when looking at homes. And you’ll need to be prepared and know what to expect from each one.

One simple way to explain these cycles is with a surfing metaphor: It’s like knowing the best time of day to catch the best waves or whether to wear a wetsuit at certain times of the year.

Same concept for buyers!

Just like a surfer hitting the waves, you start to know what to expect and know what time you need to be out there to get the best outcome. It’s a huge lesson for buyers to know that they’ll need to adapt and be flexible.

Go With the Flow

I can’t emphasize enough that you’ll be successful and a less stressed buyer if you know how to respond to the cyclical flow of the market – both seasonal and weekly.

My secret tips below will help you understand why timing can affect how you go about looking for a home:

The Weekly Inventory Cycle

Homes tend to come on the market Thursdays and Fridays. As the weekend approaches, buyers have time to devote to their home search.

That means you have to get organized Friday afternoon or evening to know what homes you are going to see Saturday and/or Sunday. (Your Friday nights will never be the same!)

Depending on the neighborhood you are looking in, homes will either go for “speed” or go for “the money.”

What that means is, depending on where you are looking, sellers either tend to take offers quickly OR they set deadlines after the weekend to give as many buyers a chance to see their home, hoping to get multiple offers and drive the price up.

If you see a home you like online, reach out to your agent and flag the listing so your agent can reach out to the seller’s agent to see if you need to rush out to see it and go for speed, or if you can take your time and have a set deadline, typically for early the following week.

There are exceptions to this rule, but typically, this is how the weekly cycle of new listings work.

Keep in mind that the inventory of homes for sale changes weekly, and depending on the time of year, it can be drastic. So once you decide to seriously buy a home, you really need to be out there looking every weekend you can in order to see what has come on the market each and every week. And again, have a strategy in place for “speed” or “the money.”

The Yearly Inventory Cycle

Here’s a breakdown of what to expect during the year:

• Inventory (the number of homes on the market) has a yearly cycle that looks like a bell curve with the low periods in December and January, and the height of the inventory peaking from April through June.
• Suburban homes follow the school calendar and tend to become available in April/May/June. Not as many suburban homes come on the market at other times of the year.
• The overall market slows down in July and August but picks up right after Labor Day.

What’s all of this mean for you?

Go with the flow! If you are starting your search in December, January, or August, be prepared that there won’t be that many homes to see. If you can be patient and wait it out until March, April, May, or June, you’ll have more to choose from.

That’s why you don’t want to get frustrated or give up if it’s simply timing that’s not on your side.

Now there are exceptions to every rule, so if you want to know what to expect for your own home search, get in touch and I’ll help you through it all. It’s not one-size-fits-all and there are no hard rules, just trends to keep in mind.

Let me know what you are looking for and where you would like to live. We can get you started on your search and help you fine-tune it to your needs and budget. That way you’ll know what to expect and avoid any anxiety about your search.

“Chillax” and ride the wave of this great Northern California market! Let me show you how!