The weather affects our lives in so many ways, and it can affect industries and businesses just as much if not more. The real estate industry is no exception and can slow down immensely depending on the weather or time of year. Let’s dive into a few ways that weather can affect the real estate market.
Hurricane season is around the corner, and depending on where you’re located around the world it can have a huge impact on real estate. Even if you don’t typically get hurricanes in your area, there’s usually some other sort of big weather event that has a tendency to occur year after year such as tornados or blizzards which can put a damper on your real estate plans. For example, after Hurricane Irma occurred there was only a 0.5 percent year-over-year increase for the month of September. Some markets saw as much as a 30-percent decrease compared to the year before.
Another thing that has a big effect on real estate are the seasons themselves. Depending on what time of year it is, the weather itself or just things that usually occur in those seasons such as holidays or school can have a big impact on the market. Most people with children are unlikely to want to uproot themselves in the middle of the school year so that can play a big role. They may want to wait until school is out, so they can set their child up for a fresh new year. Summertime actually tends to be the busiest season for the real estate market. June is usually one of the busiest months and July 31st tends to be the single busiest day of the year for the industry. The extra stress of the holidays also has fewer people wanting to move, which practically eliminates the period of time between November and January.
The weather and seasons directly affect one of the most important parts of real estate, and that’s competition. The real estate market is hottest during the summer time due to weather and kids not being in school, so there’s a lot of competition out there. This can be good and bad. Competition is great as a seller because it can result higher asking prices, but you also have to compete with other sellers. If the market is flooded, it can be tougher to sell your house. Buyers also have to compete with other buyers, so that can cause problems. On the other hand, in the winter time, the competition dies down a lot. This can be due to the typical cold weather many geographical regions of world experience in the Winter, or just because of the general business of the winter months. This can be a great time to buy a home, as potential sellers are more likely to lower their asking price if they’re determined to sell the house sooner rather than later.
The changing of the seasons and the weather and events that come with tend to have many different impacts on real estate. Whether you’re thinking about buying or selling, try to keep those things in mind in order to make the most out of it.