It’s Super Bowl Sunday. And regardless of how you chose to spend it, I trust you will have an enjoyable day. Here in Reno the forecast calls for a beautiful, sunny, cloudless 50-degree afternoon.
For real estate agents Super Bowl Sunday has added significance. Or more specifically, the day after Super Bowl Sunday is noteworthy. That’s because the day after Super Bowl Sunday traditionally marks the start of the home buying season.
Home buying and selling activity always picks up considerably after the Super Bowl. Why? The holidays are over; the seasonal parties and events have ended; and prospective homebuyers begin to ramp up their search for a new home in time for Summer. Knowing this, prospective home sellers will begin to list their properties. And home sellers who may have taken their properties off the market for the holidays, will begin to re-list their homes. As one of our executives commented to me Friday evening as I was leaving the office, “Enjoy the game on Sunday, and then put your seatbelt on come Monday.”
Given the length of time of a typical escrow (30 – 45 days), much of the post-Super Bowl increased activity will not begin to appear as closed sales until March and April. But given the record-setting real estate activity of recent months, it’s difficult to fathom how sales activity can be even more brisk than it has been. Recall that units sold in November and December were the highest on record for those months (see November medians and December medians).
I, for one, will welcome an increase in inventory. Currently, many of my clients are finding it very difficult to find a house in some areas due to the limited inventory. And when a suitable property is found, my clients oftentimes have to compete with other buyers seeking to purchase the same property. I’ve mentioned this before on this blog; multiple offers are now commonplace. Consequently, I am seeing properties going into contract at prices above their asking prices [Note: this topic will be the subject of an upcoming blog post.] Additionally, for my clients who have been outbid on three, four and sometimes five properties, a change in their strategy has been necessitated. For example, offering to pay cash rather than purchasing via financing [Note: this too will be the subject of an upcoming blog post.]
In the meantime, enjoy the game, or the day as you see fit, and then “tomorrow put your seatbelt on”.