Black Friday. Just these two words instill deals to be had and discounts to be taken advantage of. It also brings to surface standing in long lines and fighting over "only one in stock" items at the local department store.
Anything for them to get us to buy right?
Well, the last week in September, each year, is where real estate's Black Friday is rumored to live.
Yes, it's a real thing.
Black Friday in real estate is similar. Great deals to be had, homes flying off of the shelves and great discounts to be taken advantage of.
In the real world, mortgages are typically 30 or more days in length. People are buying homes with at least 3.5% down payment and are paying their own closing costs, approximately +3% in today's real estate market. (09/24/2019)
Homes that are for sale, typically have their prices reduced close to the 30 days on market time. The banks originally set that standard back in the last foreclosure cycle, and the one before that.
The bank's 30-day reduction strategy happens when there aren't any offers currently accepted and when the foreclosure they are selling is not in escrow.
They may ask the real estate agent they have hired to represent them to do another Broker Price Opinion, the BPO. They also may want another "non-related" agent to give them a new and fresh estimate of value.
Either way, this is the start of a price reduction strategy or a price correction method, as price reductions are now starting to be called. "correction".
The banks have found that 30 days on the market is the sweet spot in which to have a price correction initiated on a home that they are having sold.
In real estate, the last week in September statistically may seem to have more "price reductions" due to the changing of the seasons.
The last week in September is also known as the changing from Summer to Fall. Fall typically starts during this last week in September.
That being the case, if there is a home on the market, that seasonal change may cause a homeowner to want to reduce their price to get their home sold before the winter sets in.
In California, we have great weather. Our cold is not really cold as compared with the rest of the country, maybe excluding Florida.
Houses sell all year round and we don't have to fight the snow and ice here in Southern California. But, most seller's don't want to sell a home during the winter. Hence, if they are on the market for sale during the summer and enter into the fall, they are going to either take the home off of the market, or they are going to entertain a discount to get it sold.
Like Spring/Summer have the highest numbers on a traditional year in Santa Clarita real estate for the most homes selling. Fall and Winter have lower than those numbers pertaining to homes selling in those seasons in the Santa Clarita Valley.
Of course, I stated in a "traditional" year. Things change when it comes to non-conforming years with "non-typical" home inventory. Such as a Foreclosure Market - check 2011 and 2012. We had huge numbers of home sales during the Fall and Winter of those years. As it happens, that was the low point in the Santa Clarita real estate market. That being the case, if you bought something during that time, you are sitting at double it's value today, most likely!
Question - is the last week in September really a better time to buy a home than any other?
I'd venture to say with my experience the last week of December is better. If there is a seller selling a home during the week between Christmas and New Years, they are either misinformed by their agent, have a real estate agent that won't let them out of the contract, or they really - truly have to sell no matter what.
However, there are exceptions to any rule, most at least.
I have run the numbers this week to give you a glimpse of what happened yesterday, during the first day of Fall in the Santa Clarita Valley.
As you can see, I ran six of the Santa Clarita Valley Cities. Newhall, Saugus, Stevenson Ranch, Valencia, Canyon Country, and Castaic.
Residential only to see what happened during the 24 hours of the first day of Fall, aka Black Friday in Santa Clarita real estate.
Nothing special thus far. Maybe the homeowners that are selling are going to do further price reductions this week?
All you have to do is register for an account on the top local Santa Clarita Home Experts website in order to find out what is going to happen with prices later this week.
I am sure that some of this hype is real estate syndication website sponsored. They are wanting you to give up who you are when searching for homes and real estate in order to sell your personal info for money.
They love the big numbers and don't care how much spam you get as a result.
When you register on the Santa Clarita home experts website, you are guaranteed not to be spammed. Not to get spam. Not to be spammed in any way.
You are guaranteed to get a fast and accurate search. You are joining a real estate website that has been approved by the National Association of Realtors (N.A.R.) and by the California Association of Realtors (C.A.R.), plus the Southland Regional Association of Realtors (S.R.A.R.). Finally, Santa Clarita home experts have to be a member in good standing throughout the Boards of Realtors, and RE/MAX international, of California and of Hawaii has also to show Connor and Paris MacIvor in a good light.
The real estate syndication websites would not hold up to such scrutiny, no doubt.
What I want is to be your real estate agent. I have been writing about real estate since 1998 in one form or another. The internet made it easier when it comes to publishing real estate information and content about the housing market.
So hence me being able to talk about Santa Clarita's Black Friday in real estate.
I'm Connor with HONOR and I'm glad to be of service to you and yours. I will be here when you are ready for my protective services related to all that is real estate in Santa Clarita, Black Friday or not.
Check out my Santa Clarita housing radio show where I give market updates and keep my clients informed in the best ways.
Also, with all the writing, I have a top Santa Clarita real estate blog where all the information gets updated and you can learn about the housing market and avoid any traps or pitfalls.