Is There Really a Summer Slowdown in Real Estate?
Number of Active Listings and Sales Los Altos 2024 YTD | Data provided by Alex Wang, MLS Listings
Editor's Note: This article recently appeared in the Los Altos Town Crier on August 7, 2024.
Your house has a unique individual address and property. It is one-of-a-kind, as no two homes are ever identical, even if they share the same floor plan. Its value encompasses not just the property itself but also the surrounding street, community, and area, which contribute to the lifestyle offered by living there. Real estate sales are, in many ways, the ultimate retail product, and like other retail businesses, it experiences seasonal fluctuations.
A common question I get asked is, "Is summer a good time to sell a home in Los Altos?"
In Los Altos and the surrounding areas, a large portion of the buyer pool consists of families with school-aged children. Typically, we observe a slowdown in real estate transactions during the summer months. The slowdown occurs because families often use school breaks for vacations, moving into new homes, and getting their children settled in schools. Additionally, many residents with international ties take extended summer trips abroad to visit family. I received the most 'out of office' replies from Realtors during the July and August months.
From my experience over the past 20 years, particularly in Los Altos and the surrounding communities, the peak time for buyer demand is usually from March to May. Listing your home during this period can attract more potential buyers and increase the likelihood of receiving multiple offers. Families planning to move into the area prioritize this timeframe to secure a home and prepare for the upcoming school year.
However, a summer slowdown doesn't necessarily mean you can't successfully sell your home. The market in Los Altos moves quickly, with 32 homes selling in July and an average of just 14 days on the market (see graph), which matches the number of sales in May despite having fewer active listings. You could still list your home in June and complete the sale with plenty of summer left. Furthermore, many local families already established in the area might want to upgrade their homes during this period, as they face fewer logistical obstacles during the summer break.
For buying real estate, my perspective is slightly different, and the critical point lies in the lack of control you have as a buyer. The best time to buy is when it aligns with your family's readiness and life circumstances. It's crucial to have your financing in order, work with a knowledgeable Realtor, and clearly understand what you're looking for in a home. The market here moves quickly, so be prepared to act swiftly. Start exploring homes well before your planned move date to get a sense of what's available and to refine your must-have list. Remember, you don't control the inventory as a buyer, but patience, persistence, and preparedness can ultimately pay off.
Alex Wang is a Los Altos resident, Realtor, and founder of Rainmaker Real Estate. For more information text/call (650) 800-8840 or visit AlexWang.com.
