The Super Bowl and Real Estate
What Does the Super Bowl have to do with local Real Estate?
If you are a fan of real estate and a fan of football, you may have noticed a strong parallel between all the grid-iron hype and that of the Spring real estate market. The Super Bowl and Real Estate are synonymous with kick-offs. The Big Game kicks off the ultimate rivalry event while the real estate industry kicks off the “Spring” market. While winter isn’t over until March 19, 2020, many real estate agents can’t help themselves – they often refer to the week after Super Bowl as “Spring”.
Traditionally, when Thanksgiving comes around each year and football rivalries heat up, the real estate market starts to simmer down. The reason for this is related to a “holiday slow down” that turns the attention of buyers (and sellers) away from real estate plans to focus on the busy holiday season. This soft market environment traditionally ends after Super Bowl weekend – why? The Super Bowl is an unofficial American holiday and symbolizes the end of the holiday season across the U.S.
Another reason for the slow-down in most markets across the U.S. – climate. Winter weather usually is not ideal for showing property and homes often don’t show in their best light. Curb appeal can be drab and views can be obscured by clouds and storms. It doesn’t make home shopping sound like much fun, does it? Admittedly, it is much easier to kick sandals off in Spring than to struggle and tug boots off when a seller asks for “no shoes” to be worn while viewing a home. With home sales being very slow and stagnant during the winter cycle, it’s no wonder the real estate industry gets a little Spring in its step when buyers turn their attention back to the market and sales heat up again!
TO SELL OR NOT TO SELL BEFORE SUPER BOWL
While the real estate market “sleeps” during this Thanksgiving-to-Super Bowl period, many argue that this is actually one of the best times to sell. There are numerous buyers still in the market with the need for a home and inventory is painfully low. On the advice of many real estate experts, sellers will tend to “pause” their listing and take a break from the market between November 1 and early February of the new year. In the meantime, buyers coming to the area for new jobs, buyers whose family situations may be changing, buyers who need to close something before Dec. 31 for tax reasons, and buyers from all kinds of other scenarios are still on the hunt for suitable property. During this soft market, yes, open house attendance can be very low and calls for showings can be days apart, but houses DO sell.
As real estate agents and home owners prepare the next wave of inventory for the “Spring” market to hit after Super Bowl weekend it is not uncommon for homes to sell before they even come to the public market. Savvy agents scour listings on hold and question their colleagues about upcoming inventory. There is a strong undercurrent in the winter market of properties trading before they even hit the market. Much of this transpires without much attention, but the activity has a strong impact on what happens in the Spring market. New high sales can be established, driving comparable sales upwards, and Spring buyers could be paying more for the same product than a winter buyer did just a few weeks earlier.
OFF MARKET SALES TURN UP IN JANUARY
In the January 2020 “soft market” numerous off-market sales have taken place here within the South Bay market alone. At the Stroyke Properties Group, we have executed a few off-market sales in January for our sellers: homes that had planned to come to market after the Super Bowl . . . Take a look at 708 2nd St in Hermosa Beach. This property listed and sold within one day. Another, located at 405 Bayview Dr. in Manhattan Beach, listed and was preparing for the market when along came competing offers and the property immediately sold. Both homes offered dynamic, unblock-able ocean views and both homes were snapped up immediately by demanding buyers.
Last week, there were only two new listings introduced to the Manhattan Beach market. As of today, there are 19 active listings in the city of Manhattan Beach (4 of these properties were on the market earlier in 2019 and are “refreshing” for another run in early 2020). Six properties listed and found a buyer within the month of January. That’s not taking into account properties that never even made it to the open market before they sold.
The interesting number to watch closely will be the number of homes that “list” this week after The Super Bowl, from February 3rd through February 7th, and then watching how many of those properties find buyers before February 29th. Yes, this year, the market gets an extra day of reporting in February due to 2020 being a Leap Year.
The key to a quick spring sale? A strategic pricing plan, an excellent marketing package, an experienced real estate professional with deep market knowledge, and a property in top showing condition. Contact one of our professionals at The Stroyke Properties Group to learn more about how to take advantage of the kick-off to real estate season in the South Bay. But only after you enjoy Super Bowl LIV!