Real Estate Market Changes After Labor Day
2 minute read
September 3, 2014


labor day

Labor day has come and gone, school is back in session and the summer season is drawing to a close. The marketplace is affected in many ways after labor day. Here’s how this seasonal change affects the real estate market.

1- Market Shifts to a Buyers Market

During the transition from summer into fall the homes for sale inventory does not decrease substantially, most owners are still looking to sell their home before the start of winter. However, the number of buyers in the market can significantly drop. According to Trulia, in September as the summer ends and school season begins, home searches fall below the annual average and continue to decline through December. The combination of motivated sellers and less potential homebuyers shifts the market into a buyers market.

2- Median Home Price Drops

The end of summer means an overall drop in the median home price. According to the Redfin Research Center home price growth was flat over the second half of the summer. This lack of movement in home price means a drop if home listing price after Labor Day. Homes with price drops hit a high in July this year as sellers begin to accept that it is not a seller’s market any lone.

Overall, anyone currently participating in the real estate market needs to adjust their ways of thinking to what the market is currently yielding. Sellers need to price their homes accordingly to encourage the right kinds of buyers to come through. Buyers need to be on the look for motivated sellers and fair deals.

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