Do Homes Sell in Fall and Winter?

Colorado had snow last week and is having shorts weather this week. Fall is truly here. As is the perennial question I hear from folks about real estate, "Do homes sell in Fall and Winter?" The short answer is yes, at a slower rate. In the neighborhoods where investors reign king, the rate barely drops, except at year end. The peak of activity is still in early summer.

The more important question to answer for a savvy buyer or seller is, "What is going on in the neighborhood where I care about the real estate?" Looking at our latest heat map of neighborhoods in the Denver Metro area, I see several healthy neighborhoods, some beginning to feel the declines caused by distressed homes, many seeming to slow the descent or even turn around. The variation is really better measured on a neighborhood level. (If you want a copy of the heat map for your part of town, just contact me with your email and the address or neighborhood, so I can send you your map.)

Another valuable question to answer is, "How fast are homes selling in my area?" The adsorption rate quantifies this and is easy for anyone with the data to calculate. Adsorption rate is how many months it would take at this rate of sales to sell the current inventory. The number is described in terms of "months of supply". Ask your realtor for the adsorption rate. (Here's a more thurough explanation of adsorption rate.) If you're participating in a buyer's or a seller's market your strategy should shift.

There are some other important questions that are purely subjective. Questions around your ability to move, timing around other events in your life, your finances compared to what is needed in the market (a buyer and a seller consideration), and how you choose to position your home in the market as a seller all inform your decision to buy and/or sell.

For first time home buyers wanting to capture the $8000 tax credit, you have to get a home under contract to close by end of November. October is your time to snag the tax credit. Congress may or may not extend this savings.