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How Does The Summer Season Affect The Sale Of Apartments?

Summer has arrived, vacations and slowly the attention of all of us is directed towards the beach, rest and the annual break from work. This summer is certainly different from the previous one because the situation with the pandemic has calmed down, so many have gladly received the news that they will still be able to travel to some further destinations this summer.

According to statistics, the summer season has a big impact on the overall sales, not only on the real estate market, because people’s attention is focused mainly on summer vacations, but how this differently and for much happier summer affects the sale and purchase of apartments, we talked with City Expert Milo Mitic.

According to him, the summer season has a great impact on the real estate market throughout California, because every year from July 15 to August 15, there is a clear trend of declining number of advertised real estate and declining number of buyers looking for real estate at that time. , he points out, the situation is much more specific and the decline is more extreme because a lot of people started planning and going on vacation earlier.

Impact of COVID pandemic on real estate market still strong

“This summer, people started thinking about vacations much earlier, which caused the decline in sales and purchases of apartments to start much earlier than usual, as early as June 1, even a month earlier than in previous years and much more extreme form because in previous years the decline was 10% or 15%, and now the decline in the number of buyers looking for real estate is much greater, “explains Mitic.

The main reason for that, he says, is the situation with the pandemic, which has changed for the better, so people started thinking about vacations or going on vacation much earlier.

“Everyone could hardly wait to take advantage of the relaxed measures and that is why the focus is not on sales. Selling or buying real estate is a process, it takes months and it is one of the bigger decisions in life. People focus on vacations, and the owners do not sell their real estate, “said Mitic.

He adds that one of the reasons why the supply and demand for apartments has been reduced on June 1 this year is that there is a fear among people that the situation with the pandemic will continue in the fall and that measures will be introduced again, which is why people are looking to during the period of June and July they go on vacation and take advantage of that period of mitigation measures.

How the summer season affects real estate prices
According to the words of the operational director of City Expert, real estate prices are stagnating and there will be no significant price changes in the old or new buildings during the summer.

He adds that due to the reduced offer, real estate with a good price-quality ratio will be easier to float on the market, while on the other hand, those owners who are in a hurry to sell their real estate above the market price in the summer will have to adjust it.

Will real estate prices rise after the summer?

Mitic points out that the situation on the market is still uncertain, but that the predictions that prices will have a similar growth trend as before.

“The prices of all materials have increased significantly in the previous period, which affects the price per square meter of new construction. Banks continue to keep interest rates at a record low, which is why housing loans are more affordable, and our Credit Advisors are there to easily and quickly implement them through the loan process. “We expect that from September, when vacations are not in focus, the same tendency of real estate price growth will continue,” he says.

In the end, the current buyers are serious, that they are much more picky, informed and are looking for real estate with a good price-quality ratio, which is why the owners themselves should offer a price that is in line with the quality of their real estate.

 

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