Superbowl Sunday and Real Estate
If you are a fan of Superbowl Sunday and Real Estate, and a fan of football, you may have noticed a strong parallel between all the grid-iron hype and that of the Spring real estate market. The Super Bowl and Real Estate are synonymous with kick-offs. The Big Game kicks off the ultimate rivalry event while the real estate industry kicks off the “Spring” market. While winter won’t be over just yet, many real estate agents can’t help themselves – they often refer to the week after Super Bowl as “Spring”.
Traditionally, when Thanksgiving comes around each year and football rivalries heat up, the real estate market starts to simmer down. The reason for this is related to a “holiday slow down” that turns the attention of buyers (and sellers) away from real estate plans to focus on the busy holiday season. This soft market environment traditionally ends after Super Bowl weekend – why? The Super Bowl is an unofficial American holiday and symbolizes the end of the holiday season across the U.S.
Another reason for the typical slow-down in most markets across the U.S. is weather. Well, outside of California and Florida! Winter weather usually is not ideal for showing property and homes often don’t show in their best light. Curb appeal can be drab and views can be obscured by clouds and storms. It doesn’t make home shopping sound like much fun, does it? Admittedly, it is much easier to kick sandals off in Spring than to struggle and tug boots off when a seller asks for “no shoes” to be worn while viewing a home. With home sales being very slow and stagnant during the winter cycle, it’s no wonder the real estate industry gets a little Spring in its step when buyers turn their attention back to the market and sales heat up again!
TO SELL OR NOT TO SELL BEFORE SUPER BOWL
While the real estate market “sleeps” during the Thanksgiving-to-Super Bowl period, many argue that this is actually one of the best times to sell. In 2020 this was an amazing time to sell since there was and continues to be a shortage of inventory. There are numerous buyers still in the market with the need for a home and inventory is painfully low. Some sellers will tend to “pause” their listing and take a break from the market between November 1 and early February of the new year. Yet we have seen some amazing sales during this times. In the meantime, buyers coming to the area for new jobs, buyers whose family situations may be changing, buyers who need to close something before Dec. 31 for tax reasons, and buyers from all kinds of other scenarios are still on the hunt for suitable property. During this normally soft market, yes, open house attendance can be very low and calls for showings can be days apart, but houses DO sell. Remember though, that in CA, we are still not having open houses due to the virus.
As real estate agents and home owners prepare the next wave of inventory for the “Spring” market to hit after Super Bowl weekend it is not uncommon for homes to sell before they even come to the public market. Savvy agents question their colleagues about upcoming inventory. I have also been known to find off market properties for my clients.
There is a strong undercurrent in the winter market of properties trading before they even hit the market. Much of this happens without much attention, but the activity has a strong impact on what happens in the Spring market. New high sales can be established, driving comparable sales upwards, and Spring buyers could be paying more for the same product than a winter buyer did just a few weeks earlier. Again, that would be the typical market. Right now, although pricing continues to increase, this is a terrific time for buyers to get more property because of the very, very low interest rates.
WHAT’S NEXT?
The interesting number to watch closely will be the number of homes that “list” thE week after The Super Bowl, from February 3rd through February 7th, and then watching how many of those properties find buyers before the end of February.
The key to a quick spring sale? A strategic pricing plan, an excellent marketing package, an experienced real estate professional with deep market knowledge, and a property in top showing condition and staging. Call me and enjoy the Super Bowl!