A reader and prospective home buyer, Katherine is wondering whether the real estate market will slow down now that summer is here.
In particular, she's worried that all the good homes were snapped before Memorial Day and new listings may start to dwindle.
I was wondering if you could post something about Memorial Day weekend listings. I have noticed that a ton of homes that were on the market for a while (well not very long in this market but longer than a week) are being listed as pending this week and I had heard that after Memorial Day Weekend the home listings dwindle. In an already low inventory year, I imagine people may be extra stressed about the lack of homes so they are scooping up what's left. I was wondering if there is any truth to this or is it just the rumors that I have been heard. I was just curious was general market trends are after Memorial Day weekend in terms of listings- do they typically drop?
In the good old days, Memorial Day was the traditional start of the summer vacation season.
Folks headed to the Cape and the mountains and the real estate market went into sleep mode until fall.
But it's been years since things worked liked that - if they ever truly did.
Cyclical patterns in real estate appear increasingly less important in setting the pace of sales activity than government action or at least the possibility of it.
Right now, the Fed is calling the shots in the real estate market, and rising interest rates, coupled with concerns the Fed may start to back off on its multitrillion-dollar monetary manipulations, are likely to keep buyers and sellers in high gear for months to come.
Buyers want to lock in a house before rock bottom rates start to rise, and sellers are now starting to jump into the market as well, realizing the window for cashing in on this new mini bubble could be limited.
Does that mean there will be no drop off at all in listings or sales as we head deeper into summer? I wouldn't go that far.
But the old seasonal patterns in real estate are increasingly looking like a relic of the past, with bidding wars over the holidays and the so-called spring market starting in January.
If you want to know where the real estate market is headed, don't look at the calendar. Instead, start reading up on the Fed and what's latest plans are.
That's my take, gang. What's yours?
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