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The Spring Squeeze

pricing Jun 13, 2019

In one of my previous lives, I was in the motorcycle parts business, which is very seasonal.  There’s not a lot of activity through the winter months, and then the spring hits hard, and it’s pandemonium for a couple of months. 

I’ve found that it’s not much different in Real Estate.  While it’s true that properties sell all year round, a skilled agent learns to have increased awareness of the seasonality of the business, especially for certain market segments.

For example, young families are most likely to be out looking for their new home in the spring, so they can take possession in July or August before school starts in the fall.

If you take a look at the monthly sales volume for this type of home specifically, there is up to FOUR times as much volume in the busiest months (May and June) as compared to the slowest months (December and January). 

Note: I’m looking at my local (Calgary) market for this data, but it’s not going to be much different anywhere in North America, because young families have the same desire to get settled in their new home before school starts.

Not only is the volume dramatically higher in the peak months, but it also starts very suddenly, and subsides just as quickly — not unlike the motorcycle parts business!  Sure there are still sales occurring over the summer months of July and August, but not nearly at the same pace as in May and June.

So, what does this mean to you as a listing agent, when you’re listing a typical “young-family home”?

Well, along with ALL the other data that should be considered when determining a competitive price, you should also think about the “Spring Squeeze.” 

No, not the New England IPA from Agile Brewing, although I’d love to try one sometime.

The Spring Squeeze refers to the rapidly closing window of opportunity as you get later and later into the spring Real Estate market.

For example, if you’re listing a young-family home right now (in the middle of June as I write this), the spring market may be THREE QUARTERS over already!

A similar home that sold for a good price a month ago may have had TWICE as many potential buyers at that time, as compared to what you have left for your new listing.

If you can explain this concept effectively to your sellers, it will help to get your family home listing priced properly and sold quickly before the summer slow-down. 

After all, the quicker it sells, the more money your seller is likely to get.

If you’d like to learn more about pricing effectively, I’m offering some coaching sessions on this topic right now.  It’s one of the most important skills you can develop as a REALTOR®.

Just send me an email for more information:  [email protected].

—Coach Ted

Ted Greenhough

12 X RE/MAX Chairman’s Club ($500K+) all as an individual agent (2006-2017)
Now, I teach good REALTORS® how to be great REALTORS®

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