Real estate is cyclical.

Real estate is local.

These are two statements that we’ve all heard, but what do they really mean?  Well, when it comes to understanding the activity within Walnut Creek and our surrounding area, it helps to put specific numbers to the question.  By looking at the quantity of sold properties each month during two very different years, we can clearly see similar trends.  Take, for example, 2005 (a year nearing the peak of the bubble) and 2009 (a year at or near the bottom of the market):

The volumes are different, but the trends are clearly the same.  Activity ramps up through the beginning of the year (January, February, March), peaks during the summer months (May, June, July) and then decreases as schools get back into session and we enter the holiday season.

Knowing this type of information typically won’t change a person’s decision to buy or sell at a given time.  However, it should be used to help set the appropriate expectations.  For example, if you are trying to sell your home during November and you’re the most expensive house in your area, if there is any doubt about justifying the price, you should be prepared for a wait before you start to get any offers.  Likewise, if you are a buyer during late Spring and early Summer, you should be prepared for some competition when you make your offers.

Understanding the environment in which you are working in can, and will, greatly reduce the stress and frustration that is all too commonly experienced by both buyers and sellers.  It’s unnecessary, though, and can be avoided by working with the right individual.  Save yourself the headache and frustration, give me a call (925.817.8428) and get the information you really need.

This entry was posted on Sunday, March 14th, 2010 at 11:49 am and is filed under Market Trends, Real Estate, Walnut Creek. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.