Summer time is perfect for weekend getaways to the Hamptons or that long-deserved vacation away from the city’s smoldering pavements. Not surprisingly, therefore, it’s also historically known for being one of the slowest sales period of the year. The question is: is this year’s seasonality trumped by local market dynamics? In other words, if you’re a seller, should you list now or wait until the Fall? Here are some pros on both sides to help you make up your mind:
The pros to waiting until after Labor Day:
- More buyers: Certainly, with so many people leaving the city for the summer, it only makes sense that there are fewer buyers out there looking to purchase in the hot summer months. They would prefer being on a beach somewhere, increasing the profits for sun block manufacturers.
- More frenzy: With more traffic and more buyers comes the increased probability of bidding wars or, at the very least, a higher sense of urgency likely to be felt by potential buyers. All of this only raises the chances of getting a higher price for your property (not taking into account any negative macro forces, of course)
- Need to renovate: If you have a small-ish property that shows sub-optimally, it may be best to invest in a summer renovation and hit the market with a fresh, newly-redone property in the Fall to maximize the sell-ability of your apartment.
- Belief of improving market: If you believe that the last two quarters are only the beginning of a longer-term improvement in the market, you may as well wait until September or October to list, which will also serve to give you comps with consistently increasing prices.
The pros of listing now:
- Big fish, little pond: Conventional wisdom points to waiting until the Fall to list, meaning that many sellers are waiting for September enter the market. This translates into increased competition for buyers in September or October, versus the relatively slim pickings we’re seeing now. You may well be able to stand out today versus be one of many tomorrow.
- Existing buyers: Though many buyers are out of the city, those who remain in the city and are in the market are damn serious for the most part. Who else would be out in 90+ degree weather, touring open houses or taking time off from work to make appointments mid-week? In this case, it’s a matter of quality versus quantity of buyers. Side-note: if you do get an offer in the summer, you would be best served by taking it seriously.
- Belief of falling market: If you believe the activity and pricing of the last two quarters are not sustainable, listing and selling sooner rather than later is the way to go. There is a comps-effect of a potential double-dip as well: since comps nowadays consider 6 months’ worth of closed sales data, the closer you are to those higher prices, the more you could theoretically ask for your property. Once/if another downturn hits, comps will only follow suit.
- Still novel: Much of the concern of listing now stems from the fear of a stale listing once September rolls around. However, with so many buyers out of the city, your listing will still be fresh and new to them. It’s an easy-to-explain story that the apartment was listed during a low-traffic month and that’s why it’s still on the market.
We hope this has been valuable in terms of helping you land on a decision on whether to list now or later. Make sure to consider your property’s specifics and its unique competitive advantage as you choose your direction.
