When Do New Homes Come Out for Buyers?

Some of our homebuyers have been looking over the winter months searching for a new home, but sometimes the number of houses is minimal. 

So in this article, we will explore when new homes come on the market.

In general new listings come on the market usually around the springtime and that the number of homes becoming available to buyers start to increase in March. You can expect the number of new listings to increase from March to September. You can see the highest number of listings in the summertime, June, July, and August. 

Overall the real estate market has patterns that repeat itself every year. However, supply and demand can cause trends to happen earlier or later in the year.

New Listings

As for King County in Washington State, the number of homes available to buyers begins in March. From January to February, the amount of the house went from 3,752 to 3,760. The number home increase a little bit. 

However, if we look at from February to March, we can a considerable increase. It went 3,760 to 4,416. 

The upward trend will continue in May, June, July, and into August. In August, you can generally expect the amount of home available to double unless there is a massive number of buyers buying.

The number of new listings will start to drop off around the end of September and drop for October, November, December. 

One thing to note is that these patterns can change direction depending on the demand of the market. So it is essential to know the local market data. 

Look For a Great Price?

July and August can offer some great buying opportunities. People tend to take vacations at this time of the year before the kids go back to school, and people the buyer who needs to buy a home for the school year have already purchased. The market begins to slow down, but a lot of people are still buying just a little less competition. The most active periods of real estate are generally March, April, and May because some families want to get into the school district before school starts. 

So at the end of summer is where things begin to slow down, but the fall is where the market starts to slow down even more. Therefore September, October, and November can be a great time to shop for a home. The pool of buyers is less, meaning there are fewer buyers out shopping for homes. Fewer buyers are competing for the same house. However, the fall and winter will provide less to chose from. The cold weather and holidays are coming, and sellers don’t want to go through the hassle of selling if they can wait.

At the end of August is where you will see the most listings, and this where you will start seeing some sellers reducing their sales price.

Can’t Find that Home?

If you are shopping for a home and cannot find a home that fits your needs during the fall and winter, then February is the best time to start seriously looking. In March, listings begin to come on the market at a fast pace and will continue to do so until September. So really your highest chance of getting a home is during this period.

In the fall season, there are still a high number of homes available a lot more than the winter seasons, but the number of homes will start to slow down. 

Sellers Market 

A seller’s market is a market that favors sellers because there are more buyers than houses. In other words, demand exceeds supply causing an unbalanced market. In a seller’s market, you can expect fewer houses available for buyers to choose from. It is favorable for sellers because buyers compete on price and terms for the home. 

In a seller’s market, you will see buyers bidding on houses and homes tend to sell for above list price. People are coming in and out of open houses. 

Buyer’s Market

A buyer’s market is when the market favors buyers because there are more homes than the number of buyers. It is when supply exceeds demand. It favors buyers because there are a lot of houses on the market, and buyers have a lot to choose from. A buyers market offers lower pricing for buyers and better terms such as inspection and financing.

In the buyer’s market, you will see homes sitting on the market for longer periods and taking longer to go pending. 

Prepare for Winning

If you are buying a home in the springtime and the market is moving very fast. Buyers are buying homes at a very fast pace and homes are going pending within a week. You must be prepared to compete in that market. 

Talk to a lender ahead of time and get pre-approved or pre-underwritten. Submit all of the paperwork that they require before submitting an offer. Sellers like to see a prepared buyer, and most likely, they will give the house to a most prepared buyer. A buyer that has not given their financial documents to their lender will definitely lose out on the house when the opportunity comes. 

Stay in communication with your home inspector if you have one. Let him or she knows that you are searching for a home, and you might need to do a pre-inspection or a home inspection in the next few days. Home inspectors will be very busy during the spring and summer season, so make sure you have someone that can be there for you when your offer is accepted or before you make an offer. 

Important Market Statistics to Consider 

Median Days on Market

This stat will let you know how long a home stays on the market before the house goes pending. It is the length of time a seller put the home on the market until the seller accepts an offer. How long a home stays on the market will let you know how active the market is. Median Days on Market of a week or two means that the market is very active and lots of buyers competing. 

Pending Sales

Pending will also show how active the market is. If there is an increase of pending sales, homes that went under contract, that means many buyers out there buying homes. An increase can mean a slowdown, but it can also mean that there are not enough homes available for homebuyers to buy. So you will have to look at the inventory. If there is a decrease in the number of available homes and a decrease in pending, then that means there are not enough homes for buyers to buy; therefore, pendings are not increasing.

Months of Inventory

Months of inventory will let you know how many homes are available. If a market has 4-6 months of inventory. It is a balanced market, and if it has less than four months, then it’s a seller’s market. For instance, King County in January 2020 had 0.7 MOI, which is a severe shortage and extremely low inventory.