Early Christmas evening, the commercials began for “after Christmas” sales by anxious retailers that couldn’t even wait until after Christmas to tell everyone what great bargains can be had. Well, the same holds true for residential real estate in terms of bargain prices at this time of year. It’s no secret that the number of homes sold, as well as prices, decline during this time of year, but I don’t know that would-be home buyers realize just how much they can save if they buy a home during this slow season.
As the STL Market Chart (exclusively from MORE, REALTORS) below shows, the median price of homes sold (the red line) dropped to the lowest level of the season in January earlier this year and in February the year before. The number of homes sold (the pink line) always hit its lowest level around the same time. Historically, this happens every year around the same time when the market is good as well as when it is not. As the chart shows, the home prices in November remained the same as October, but the number of home sales dropped significantly and prices will follow no doubt. Worth noting is that in January of this year, home prices hit their seasonal low at $168,444 but then by April, just 3 months later had increased 12.5% to $189,500 and finally peaked in June at $204,900, a 21.6% increase from January’s low.
What are you waiting for?
Therefore, even though there are fewer homes on the market to choose from this time of year and there may be additional hassles with looking at homes and moving in winter, the extra effort is well rewarded by what home buyers can save in price.
St Louis 5-County Core Market – Home Sales & Prices – Past 25 Months
(click on chart for live, interactive chart)
