The median price for a property sold in our area jumped $12,000 in December 2023. Many readers are scratching their head at that data point. Let’s take a look at the whole picture and dive into the data. With so many factors that can influence the home market, I always boil the market down to supply and demand. If prices went up, that almost always means supply is lower than demand.
Every December, fewer people list their homes to sell than any other month of the year. Every year, supply of properties for sale is roughly 30% less than other months because people don’t want to list their property during the holidays. An exception to that in the last few years is April 2020. Other than the outbreak of a global pandemic, December has the lowest number of properties being listed every year. That answers our supply side of the equation.
Let’s take a look at demand. In December 2023, mortgage rates began to drop and buyers began taking advantage of lower interest rates. Other buyers began anticipating a hotter market in 2024 and wanted to lock in a property with less competition. When demand is higher and supply is lower, prices go up.
How do you use this information? Next year, if you’re thinking about selling during the holidays, ask us for our input. It could be slower but the price could be better. Does that mean it’s a slam dunk to sell during Christmas? No. But does it mean you should automatically default to waiting until the new year? Probably not. It’s important to look at all the market data and make a decision based on your situation. Adrianne and I would love to help you make the best decision for you and your family! We’re here to help!