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Real estate seasonality: what to expect in the winter months and for the next year

Published: Nov. 30, 2021 at 4:05 PM PST
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SPARKS, Nev. (KOLO) -The winter months means the start of the slow season for the housing market.

Kayla Dalton with Dickson Realty says this is the time where the housing sector sees a decrease in buyer demand and inventory that won’t pick up again until spring.

“Obviously for the holidays people are focused on Thanksgiving, Christmas and traveling with their families,” said Dalton. “So it’s not in people’s minds for them to put their house on the market and have it be shown or actively be shopping for homes.”

What to expect in the slow housing market season
What to expect in the slow housing market season(KOLO)

According to Realtor.com, In October 2021, the median listing home price in the Truckee Meadows was $560K, trending up 67.2% year-over-year.

With median home prices hitting the peak of June of this year, Dalton says we should see stabilization.

“We’re kind of seeing it level off and the market essentially soften,” added Dalton. “We’re seeing that buyer demand exit a little bit. It’s still very high but we’ve given inventory a chance to catch up a little bit.”

But as the housing market starts to settle, Dalton says there are two main concerns that may impact homebuyers and sellers within the next year.

“We have two really big unknowns that will kind of predict what will happen in the next 12 months,” explained Dalton. “I think that’s the supply chain crisis right now which will affect building of new homes which will affect our inventory problem even more and also inflation because with inflation, we will see mortgage rates continue to rise.”

So her advice if you’re planning on house hunting? Focus on what interest rates instead of the sale price.

“That’s going to affect their buying power far more than prices,” said Dalton. “Even if prices come down $50-100,000, if interest rates jump one percent in the next year, their monthly payment is going to be exactly the same.”

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