Following the rhythm of Northern Nevada real estate
Though our Northern Nevada real estate is active year-round, there are always market niches that are more active than others at different times. Unexplainable, but very real, such niche activity is always surprising. It isn’t the seasonal, winter or summer, or other easily identifiable cause and effect factors are the subject here.
There seems to be a rhythm that buyers and sellers follow without any instruction or collusion. For example, we noticed last year that there was a surge of residential investment buyers buying property in January and February. The sales of multi-family properties waned after that. Does that mean that in the next two months multi-family property sales will be brisk, or was that a coincidence that so many acted at the same time? What caused that flurry of similar activity at that time?
We have also witnessed another local market niche that was very active from January to July, but non-existent from August to December… two years running. We are anxious to see what happens in the next six months, and wondering why there is no activity during the last half of the year. There is no seasonal, location, price, or other determining factor to explain what is clearly a market rhythm in that market niche.
It has long been a theory of ours that like-minded people often act in a similar manner. This plays out quite often in real estate. It is uncanny how often several people will decide to buy a particular type of property at a specific time with no common denominator or outside influence. We aren’t talking about a radical price drop, i.e. a new business with impact on the area, or other such incentives that will cause many people to take action. We are talking about some unknown force common to a diverse group that causes them to act in a like manner.
How does the market rhythm affect a buyer or seller? It is important to understand that just because a property is unsold after a long period of time it isn’t always ripe for a predatory offer. If you are looking, it is very likely that others, like you, will be as well. That doesn’t mean don’t make the offer you want to make; rather, we are saying act quickly when you decide to act. As outlandish as it may seem, there is a high probability that somebody else is making the same calculations you are at the same time.
If you have a hunch about doing something… do it! It is amazing how often we see multiple offer situations on a property that couldn’t even attract a showing for a long time. Sellers can also have competition that they didn’t anticipate. If the timing for entering the market is good for you, why isn’t it also appropriate for your neighbor? Often it is. If you are thinking of selling, get your information gathered quickly, make your decision, and get on the market. If there is pent-up demand for your neighborhood, or your type of property, you will be the first exposed to it and will sell quicker than if there is competition for the buyers to play against one another.
Most people buy or sell on their gut feeling or hunches. Those are initiated somewhere, a topic too extensive to cover here. Those on the same wave length get similar hunches. If that is what causes rhythm changes in market niches in real estate, then be so advised and act before the others getting the same message do. You will reap the reward of respecting and responding to your hunch.
Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts. Contact them at firstname.lastname@example.org.