Hi, I’m Doron Weisbarth with Weisbarth & Associates. Welcome to my July 2024 Market Update! Today, we’re diving into some fascinating trends that could give you a huge advantage in the real estate game. So, let’s jump right in!
Most years, the peak market activity comes in June, which correlates to the peak number of new listings that come on the market. Typically, we see the number of new listings build up during the first and second quarters, peaking around June. Then, it slows down over the summer before a second, smaller peak in mid-fall. However, this year it seems that the peak number of new listings came in May. I don’t think that this means anything, necessarily.
But what’s really intriguing is that buyer activity tends to peak at the same time as new listings. At the beginning of the year, we get this massive surge of eager buyers. And then, by mid-year, many of them have already made their purchases, while a few of them might leave the market frustrated and without a home. Of those who remain, many get caught up with fun summer activities. And then they tend to come back with renewed energy in late summer and early fall. And guess what? That’s when we see that second peak in new listings and market activity.
This perfectly orchestrated dance between buyers and sellers might explain the little wiggles that we see in median home prices. The BLUE line is the median sale price of single family homes in King County, and the ORANGE line is the number of new listings each month. The general trend in home prices is definitely upwards. But, as you might imagine, this is not a
straight line, but rather prices wiggle their way up.
You can also see the direct relationship between the month-to-month price variations and the number of new listings, which, in turns, correlates with market activity. I highlighted the peak number of new listing every year with the green line. You can see how those peak correlate so well with the peak median home prices each year. But does that mean that the value of homes overall changes? I think that the answer is an emphatic ‘not necessarily!’.
You see, what I notice is that, no matter what time of the year it is, when a good home comes on the market, and particularly if the home is properly priced and properly marketed, it will sell fast and for top dollar. Every time!
But if one or more of those three ingredients is missing or deficient, then the house will sit longer, and will not get that top dollar.
By the way, if you want to look at this data and read my report at your pace and leisure, you’ll find all this information in my July newsletter, available online and for download, for free, at Weisbarth.com/Newsletter, that’s Weisbarth.com/Newsletter.
Now, during the first and second quarters of every year, when the gap between supply (sellers) and demand (buyers) is the greatest, the market pressure might overcome some of the marketing deficiencies. So even if the house is not quite the best, or priced correctly, or marketed correctly, the market frenzy might just tip things in its favor.
But as we move into the third quarter, when we see more homes available, and fewer buyers, that gap between supply and demand shrinks. And now, just throwing your home on the market without a proper plan and strategy can be very costly. Or if you are looking to buy a home, and you think that you’ll be able to snag a good deal without competition, and therefore don’t need to be properly prepared to compete, you are going to be very disappointed. Good homes still draw plenty of buyers!
So, now I hope that you can see how this market seasonality, and other nuanced market trends will change how you approach your buying or selling strategy. Makes sense, right?
And this is where a skilled, knowledgeable real estate broker can really make all the difference for you to maximize your outcome. There is no such thing as a one-size-fits-all approach to the buying and selling process. A skilled broker will know where we are in the cycle, how other forces are affecting the market, and will know how to synthesize all of that information into a comprehensive plan for you, and then guide you correctly.
My team and I are super skilled at doing exactly that! We meet weekly to review all the market information and to discuss the best approaches for our clients. That’s why we are among the top 1% of brokers in the state of Washington – we know what we’re doing! And this is not some tired platitude – we have the numbers to prove it!
So, if you or anyone you know is looking to buy or sell a home, reach out to me and my team first. We’ll show you how market timing can change your specific game plan. We’ll provide you with that a fact-based education, custom tailored to your specific needs, to make sure that you understand exactly what’s going on. And the best part is that we’ll provide you with all that information for free and with absolutely no obligation. You see, we believe that once you hear what we have to offer, you’ll want to work with us because you’ll understand that we are the best people to represent you in your transaction. Make sense?
It's easy to refer your friends, family, or coworkers to us. You can connect us by email or send a message through my website and Weisbarth.com/refer. But you want to know what’s the best way to reach me? The best way to reach me, by far, is, you guessed it, by phone. My direct number is 206-779-9808, that’s 206-779-9808. I love helping people figure out their way around the real estate maze, and help them reduce the uncertainty and the stress that comes with it, and then get them the best results possible, truly! So call me anytime.
And remember, your business and referrals help support the Akin community, formerly known as Childhaven.
Please remember to like, subscribe, and follow for more great insights, charts, and tips on my monthly vlog. And don’t forget to read our monthly newsletter at Weisbarth.com/Newsletter
Have a fantastic rest of your summer, and I’ll see you next month for more great insights and updates. Cheers!