It never fails. Every year around the middle of October, I have buyers who decide it's time to purchase a home. They go through the pre-approval process, we run the numbers, everything makes sense, and now they're ready to go. The problem is that once people make the decision to buy something, they generally want it now. Unfortunately, the real estate market doesn't always cooperate. From early November through late January, finding a great house in Southwest Austin can be a challenge. Not necessarily because there aren't any homes for sale, but because the quality of available inventory can take a pretty significant hit.
Most experienced real estate agents will tell sellers that listing during the holidays isn't always the best strategy unless they have a reason to move. Buyer activity typically slows down, people are traveling, kids are out of school, and many homeowners would rather wait until spring when more buyers are actively looking. Some sellers whose homes have already been sitting on the market will even take their listings down for the holidays and bring them back in the spring, hoping to generate fresh interest. That leaves a smaller pool of homes to choose from, and sometimes a disproportionate number of sellers who have a pressing reason to sell. But motivated sellers don't automatically mean desirable houses. Just because you can negotiate a great deal doesn't mean you've found a home you actually want to live in.
Then, every once in a while, something interesting happens. A fantastic home in a desirable neighborhood hits the market in December. It's updated, priced appropriately, and checks nearly every box buyers are looking for. Maybe the sellers are relocating for work or have another reason they can't wait until spring. Suddenly, all those buyers who've been struggling to find something worth purchasing are looking at the same house. Even though it's the middle of the holidays, that property can generate substantial interest and potentially multiple offers. It's a good reminder that a slow real estate market doesn't mean every house is going to sell at a discount. Great homes can still be competitive, even when the overall market is quiet.
Now, if you're buying an investment property, I look at the holidays a little differently. If you're primarily concerned with your return on investment rather than finding the perfect floor plan, backyard or neighborhood, this can be an excellent time to look for opportunities. Sellers who need to close before the end of the year or simply want to move on from a property may be more willing to negotiate. And because you're evaluating the purchase based on numbers rather than whether you can picture yourself living there for the next ten years, you have a little more flexibility. My advice for buyers looking for a primary residence is to be patient and don't force a purchase just because you're ready. But if you're an investor with cash or financing lined up and a clear understanding of your numbers, the holidays might be one of the more interesting times of the year to shop. Sometimes the best deal isn't the best house, and knowing the difference matters.
