The holiday season can sometimes be more than just a time for festive decorations, family gatherings, and gift-giving. For many, it’s also a season of change and transition, especially in the real estate market. As families make travel plans and individuals consider new beginnings for the coming year, the real estate landscape experiences a flurry of activity.
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Contrary to what most would think, the market doesn’t come to a grinding halt during the holidays. But if you are planning on making a real estate move over the holiday season, there are some important factors to consider.
Motivated Buyers and Sellers Often Make Moves This Time of Year
Why would some buyers choose to dive into real estate transactions during the holidays? Perhaps it’s the desire for a fresh start in the new year or taking advantage of any incentives that arise this time of year. There will always be circumstances where people have to move, no matter what the market conditions are or the time of year: diapers, diplomas, diamonds, divorce, and death.
Sellers, too, have their reasons for listing properties during the holiday season. While their homes may be showcased in the best light with holiday decor, in November, we saw an average of 3.6 months of inventory in Canada, according to the Canadian Real Estate Association. As properties are taking longer to sell, it might take sellers through to the new year to negotiate with the right buyer on a firm deal.
The Timing May Better Align with Financial Planning
The end of the year often brings considerations related to taxes. Buyers may be motivated to close deals before the year-end for potential tax benefits, while sellers might strategize to maximize their financial outcomes. It’s essential for both parties to consult with tax professionals to understand the implications of real estate transactions during the holiday season and make informed decisions based on their financial goals.
Plan for Delays as the Process Moves Slower During the Holidays
Holiday travel plans inevitably play a role in the decision-making process for both buyers and sellers. With so many variables already in place, there is potential for delays or accelerations in transactions; the availability of lawyers and banks, along with fewer dates available to close on, all bring more challenges when it comes to the speed and efficiency of transactions. Add between changing schedules, finding movers, surprise visits from your in-laws, and unexpected weather storms, you could have a stressful holiday season ahead of you.
Before the end of the year wraps up, while new listings popping up may be few and far between, the market will always continue to move. For those buyers and sellers involved, they may have to make this holiday season more real estate-focused than their last in order to unwrap a new chapter in their lives.
