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Investor, Home Buyer in 36542

Is it best to wait until after Labor Day to purchase a condo. Will the prices fall further in the fall?

Asked by Investor, 36542 Fri Jun 26, 2009

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Although some Sellers may be more inclined to reduce their selling price after the summer season, you will probably not see any drastic price reductions during the shoulder season. You may, however, have more to choose from as a buyer since many Sellers wait until after the season to put their properties on the market.
0 votes Thank Flag Link Thu Feb 12, 2015
The fall season is a great time to purchase income producing property. There are still great buys in the Orange Beach and Gulf Shores condominium market Although inventory may have declined, sellers of may be more negotiable due to the slower rental winter months. The average median selling price of property in the Alabama coastal region continues to consistently show a 12%-14% increase. Prices are still low compared to the national average for resort areas , but continue to rise. Interest rates are LOW and there could not be a better time to invest in coastal property.

Please feel free to contact me for more detailed property information.
Living the Dream is what it's ultimately all about!
0 votes Thank Flag Link Sat Oct 25, 2014
Some buyers think they may get a better deal after Labor Day simply because the rental would be gone for a few months. Inventory is definately on the decline. Many of the most motivated sellers have already sold properties and in some buildings pricing is increasing. Could possibly see another drop I would not anticipate huge price breaks
0 votes Thank Flag Link Sun Jun 28, 2009
Inventory has been moving out rapidly this year on condos that are perceived as 'deals' by educated buyers. However, with Labor Day and fall comes a much slimmer rental market. I do not think that we will see prices fall on income producing and high demand properties, but we will see some more short sales and foreclosures. The short sales and foreclosures will provide the market place with another round of exceptional deals. Today, there are fewer deals than we saw 3 months ago and my data shows the fall season exposing deals yet to come.

There is a chance that we will see a slight drop in non-income producing properties (high end luxury condos, land) because we are just beginning to see things shake out in that market.

A lot of waterfront homes have moved in the last six months, so I think we are establishing a bottom here as well (finally).

Elizabeth Helton
RE/MAX of Orange Beach
lizhelton@gmail.com
251.948.1266
Web Reference: http://www.buythebeach.com
0 votes Thank Flag Link Sat Jun 27, 2009
Hello Investor:

Typically, Labor Day does mark the "end" of a buying season for most communities--just as Superbowl tends to summon the beginning. Although, in the last two years, I've seen a noticeable decline in the number of buyers here in California as early as Independence Day, with a gradually decline from July through September.

As the others noted, while the number of buyers tails off toward the end of summer, the prices for homes does not necessarily follow the reduction in buyers. What is more likely to happen is that well-priced homes will still sell, but, as a buyer, you're no longer one of 30 offers on the table, you're just one of 3 or 5. Also, the home sellers tend to be more reasonable and less demanding as the season wanes, so you may be able to negotiate more on the "finer" points, such as the termite work, the repairs needed, etc.

Keep in mind that inventory too will fall after Labor Day. Many sellers who do not need to sell their homes will take their home off the market for 5 months, and restart again in the spring, so the number of "good" homes also decreases significantly.

As for prices falling toward the end of the year--I do believe we're in for a small adjustment as we approach the end of the year. We have a lot of homeowners who took out 5/1 ARM loans about 5 years ago, who are due to adjust this year and next, so it's likely that another round of homes will be facing short sale or foreclosure soon, which will increase inventory slightly toward the end of the year. But that's just my opinion--not a statement of fact.

Good luck in your home purchase!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
San Jose, CA
0 votes Thank Flag Link Fri Jun 26, 2009
Typically, the slowest time in the market is the period between mid-September and the end of October. It usually follows the school year. In a resort community, it doesn't follow the school year so much as it follows the tourist season. While prices may not fall, what you do find is sellers that have gotten to the end of the "impulse" buyer season without selling because they held out for an unrealistic price. Once the season ends, a motivated seller might be willing to entertain an offer more in line with what you'd want to offer. An unmotivated seller will likely just wait until the next season and try again. Hope this helps!
0 votes Thank Flag Link Fri Jun 26, 2009
Prices may drop in the fall but depending on where you live, inventory all begins to drop off as well. In Minnesota listings begin to drop after early to mid October and are put back on the market in spring. Many sellers discover that low ball offers start coming out of the woodwork late in the fall, so they pull off for the winter and hope that prices will rise again.
0 votes Thank Flag Link Fri Jun 26, 2009
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