Historically, the real estate market slows down during the holiday season. This is projected to happen again this year, however, inventory in the Valley is still below average, which may impact the nature of home sales during this holiday season.

Currently, we are at a frenzied market, and it’s a seller’s market. Homes are still going quickly, and we are still seeing multiple offers come through. With the huge real estate market boom, it has been difficult to make the typical month-to-month or year-to-year comparisons we have in the past. Although homes are staying on the market for a longer period, that is relative. For example, a house might stay on the market now for a week or so rather than a couple of days. Also, people are not necessarily competing with all cash offers every time they put in a bid like they were earlier this year. During this holiday season, I forecast that there will only be a small parachute down from the insane housing prices we have been seeing.

READ ALSO: Average asking rent hits record high in October

During the typical holiday season, people tend to be busy and only serious home buyers are on the prowl for their new home. However, I do not believe that we are going to see a slow down like we normally do. In 2020, it was one of the best holiday seasons ever for the real estate market, and I predict this year will be similar. If you are a seller looking for a serious buyer the holiday season is a great time to put your home on the market. At the end of the day, it only takes one buyer to sell a home!

Now, due to the buyer fatigue that occurred during the summer, there are a ton of individuals who are serious about buying a home and might be utilizing what is predicted as a slow down in the holiday season to spark their search once again. There is still more demand than there is supply, so this holiday season will most likely continue the competitive nature of home buying that we have seen all year. Also, interest rates are still great—the lowest they have been in decades. This can inspire people to purchase a home now, rather than wait for the rates to rise.

Many are discussing the “inevitable” crash of the market, however, there are no factors in the market that would indicate a crash will occur. Although demand is slowing overall, it’s slowing from insanity to a fevered pitch. Based on my experience in this wild market, I believe that the real estate market will continue to be strong from now through 2022.

If you are selling your home this holiday season and it is priced at market value, you have a good shot that it will go quickly!

 

Rich La Rue is a HomeSmart Phoenix Designated Broker. La Rue has more than 38 years of experience in real estate sales and management from real estate offices to regional and national operations. La Rue began his career in real estate in 1983 in Phoenix, Arizona as a sales associate. In 1986 he earned his Arizona Real Estate Broker’s License. He also holds a California Real Estate Broker’s license, GRI, CRS and CRB designations as well as the e-PRO and the SFR certifications. For more information, visit www.richlarue.com.