Finding opportunities in the fall

By Ethan C. Nobles

Arkansas Realtors® Association ● Ethan@ArkansasRealtors.com

            After the start of school every year, the National Association of Realtors® (NAR) releases a report stating homes sales around the nation have dropped and sites the start of new school year as a primary reason.

            That’s all true, but there are some opportunities to be taken advantage of by homebuyers in Arkansas or anywhere else. According to the NAR, the summer months are typically the strongest of the year as far as sales go and the school year has a lot to do with that.

            After all, parents do hesitate to move if it means they will have to enroll their children in new school districts in the middle of a semester. Naturally, parents still buy homes in the middle of the school year, but enough of them back off purchasing houses to skew the numbers, according to the NAR.

            So, what does this all mean for someone thinking of purchasing a home? A new school year may just bring some great opportunities for buyers due to the familiar law of supply and demand. If we know the demand for homes is going to drop, then it stands to reason that markets around the state will be marked by increases in inventory and downward pressure on prices.

            Those are conditions that people shopping for homes want to see. Increasing inventories translate into more choices for buyers and more competition among sellers. And, of course, what buyer doesn’t want to see downward pressure on prices?

            The trend the NAR has identified isn’t all bad news for sellers. While it’s true that fewer homes are typically sold in the fourth quarter after school has started than in the third quarter of each year, the NAR has noted that some buyers don’t care one whit about whether they buy houses in the middle of summer break or in the dead of winter.

            According to the NAR, potential buyers in the third quarters are more likely to have no children – retired couples, single people and young couples. Those buyers might decide it’s best to buy a house after school is in session as they won’t have to compete with as many buyers.

            After all, finding that ideal home is only part of the battle. If a lot of people think that same home is ideal, then a bidding war might take place. When fewer buyers are out shopping, the chances of getting in a bidding war decrease.

            Sellers might just have more luck appealing to those “childless buyers” after the school year than the might in the summer when parents are looking to move their families into a new home. The perception there are bargains to be found and that more choices are in the market might inspire those buyers to wait until school is in session to start shopping for homes, too.

            The housing market remains a fascinating thing as there always seem to be opportunities available to buyers and sellers regardless of whether the market is booming, declining or just plain stagnant. The trick is to know what those opportunities are, when they might arise and how to take advantage of them.

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House to House is distributed weekly by Arkansas Realtors® Association