Seasonal demand and Charleston home prices
Yesterday, I wrote about seasonal trends in Charleston real estate and some of you (like me) may be wondering how seasonal demand affects Charleston home prices.
The bottom line, in general, when there is more sales activity in the spring and summer months, home prices have been higher. Take a look at the chart below and you'll notice that buyers pay more during months with more sales activity. It's simple supply and demand and when there are more buyers, demand will drive prices higher.
Now, what's up with January. Sales volume is generally low in January but prices have been amazingly strong. It just may be a statistical fluke or home buyers may be a little more generous with offers made during the Christmas season. But other than January, it's pretty clear that buyers pay more during the busiest months of the real estate year.
And when would be the best time to sell high and buy low? Your best bet, sell in October and buy in November.
The bars represent the average number of sales per month and correspond with the left axis and the lines represent the average sales price and correspond with the right axis. Data represents home sales and prices paid from January 2005 through June 2009.
