What Do Bears and REALTORS® Have in Common?

By Raymond Stoklosa · October 7th, 2009

Seasonality of Real Estate Market

Bears do it, squirrels do it, so do bats, frogs, ladybugs, and even a whole lot of Realtors do it. What am I talking about? Of course, I’m referring to the annual REALTOR® Hibernation Period that begins in October and lasts until Super Bowl Sunday.

The REALTOR® Hibernation Phenomenon

This “REALTOR® hibernation” phenomenon has become as regular as the tidal movements in the Pacific Ocean, and its consequences are as predictable. It seems every year sales activity peaks in August and plunges in January, February and March (1st Quarter). Clearly, as REALTORS® go back to work – usually after Super Bowl (for you non-football fans is around the first Sunday in February) – business activity accelerates and sales climb. This seasonality repeats itself each year, and yet, many people are as surprised as if it never happened.

Media Reports Will Report Slow San Mateo Real Estate Market

We’ll see media reports in the 1st quarter of the year remarking on the slow real estate market and assigning causes ranging from lack of consumer confidence to bumps in the interest rates to what some talking head predicted will happen in the Middle East. The fact is real estate – particularly the home resale market – is cyclical.

Is the Seasonal Real Estate Market Slowdown Normal?

The normal and natural growth in listing inventory – homes offered for sale through the Multiple Listing Service (MLS) – from January through April is counter-balanced by the increase in the number of sales from May through October. Curiously enough, there is usually a slight uptick in the number of sales in December which most experts attribute to the desire of some home buyer to take advantage of the tax benefits available in the year of purchase.

What Does Seasonality Mean to Potential San Mateo Home Sellers?

Simply this, most buyers are in the market April through June. This is the optimum time to sell your San Mateo home. More buyers translates to more sales. There is a tendency of buyers to become frustrated when they lose a home they make an offer on to someone else. This experience is a great motivator and often drives buyers to make decisions quicker.

What Does Seasonality Mean for Prospective San Mateo Home Buyers?

Well, we tell our clients if you want the best deal shop hardest in December and January when it has been raining for 3 weeks and the home owner has barely had showings. With fewer buyers out shopping, you will have a better chance to negotiate solely with the seller instead of getting into a multiple offer scenario which is in effect a silent auction.

Buying or Selling? Use Seasonality in Your Favor

There is a time to buy and a time to sell your San Mateo home. Using the seasonality of the real estate cycle to your advantage can work in your favor. For prospective home buyers we are approaching the optimum time to buy a home in San Mateo County CA.

Considering Buying a Home in San Mateo County?

If you plan to live in your next home for at least 5 years, you have good credit, a reasonable down payment and stable employment, take a serious look at what the San Mateo County housing market has to offer. San Mateo real estate is more affordable today than it has been in the last decade. With prices down and interest rates at historic lows, this may be the right time for you to buy the right home at the right price.

Check out our San Mateo County Home Search page to see what’s available today.

Ready to Explore Whether Now is the Right Time to Buy?

Check out our Buyer Representation page, then call (650) 655-2500 or email info[@]RayChelRealtyGroup.com for a free, no obligation consultation. We’ll help examine your situation to help you make an informed decision if now is the right time for you and your family to buy a home.

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