Smart Buying and Selling Strategies for the 2nd Half of 2018
August 30, 2018 | Buying
One myth is that most resale home transactions occur during the first half of the year. That is dispelled by the chart shown here.
Therefore, the last half of the year is slightly more active than the first half. If you choose to do a real estate transaction then, you’ll have plenty of company.
A little appreciated reality is that most of the price appreciation for a given year will occur in the first six months. A normal pattern for the last five years is to see prices that are 12% to 14% higher in June than they were in January. About 3% to 4% of that appreciation is given back during the last six months, resulting in annual appreciation rates of 8% to 11%.
This mini-retreat of price gains during the last half of the year creates different opportunities for buyers and sellers.
HERE ARE STRATEGIES TO FOLLOW:
If you have the flexibility to wait until next year, history says you’ll need to hold on until January or February for prices to get back to their April – June 2017 peaks. Waiting until late Spring of 2019 will get you the most bang for your buck as values will be setting a new high level by then (again, if the market follows patterns it has established over the last few years). If waiting, it’s wise to get with your agent now to see what repairs or improvements you can be making to your home so as to maximize your rate of return when you sell next year.
1) The strategies outlined above assume that predictable patterns established over the last six years will continue for the next 12 months. We think that likely, but nothing is guaranteed.
2) The market patterns identified above are for the market as a whole. Specific geographic areas and particular price ranges may be performing differently from the overall market. You and your agent will have to see if the market’s general patterns apply to your situation and how the market realities in your area might change the general recommendations offered in this article.
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