A Red-Hot Winter
Now that the holidays are over, it is time for housing to shift to the Winter Housing Market, when the inventory is flat, demand rises, and the pace of the market rapidly heats up.
Mixing a chronically low inventory with rising demand has always resulted in a much hotter housing market as winter progresses.
Laguna Beach is renowned for its beaches, coves, coastal parks, art galleries, trollies, and spectacular ocean views. Tourists flock there year-round, but it becomes exceptionally crowded during the summer after the kids get out of school. To beat the crowds, many arrive for vacation in May or early June only to be greeted with a thick layer of coastal fog that has trouble burning off during the day. At times, it can be pretty chilly. May and June are typically the cloudiest days of the year, often referred to as “May Gray” and “June Gloom.” Vacationers during these months have preconceived expectations of bathing on sun-soaked beaches and admiring picturesque sunsets, yet the gloomy cloud cover can last a week without sunshine.
Similarly, buyers who start their home search have preconceived expectations. Many expect plenty of choices, less buyer competition, and a slow pace that enables them to take their time isolating a home. Yet, in Southern California during the Winter Market, from mid-January to mid-March, buyers find that the pace of housing is a lot hotter than they initially anticipated, with fewer choices and plenty of buyer competition. In addition, as winter rolls along, the market grows stronger and stronger.
Excerpt taken from an article by Steven Thomas.
