Welcome to another edition of the Artemis Real Estate Newsletter! We hope you enjoyed a wonderful summer, maybe got a chance to travel, and stayed safe and healthy.
We’re busy plugging away as the autumn market kicks off— prepping new listings, launching ready ones, and working with our buyers to find that special place to call home!
Labor Day represents a special time for our local market. It marks the beginning of the year-end push— a very busy time where the highest concentration of new listings come out to a large audience of ready-to-go buyers. With folks returning from summer travel and kids headed back to school, the market comes alive from the summer doldrums, culminating in a frenzy of activity before the holiday season arrives.
The flurry of activity in the autumn market differs from the spring in that it’s compressed into a much smaller window. New listings tend to launch a week or two before Labor Day and continue through early November—which is a quick selling season compared to the spring. After that, things quiet down for the winter and pick back up around January 15th.
Monthly Prediction: Show Me the Shoes!
This is where we'll attempt to make a prediction about the future based on all the inputs we receive each month - whether it be boots-on-the-ground experience, roundtable discussions we're participating in, or the countless articles, podcasts, industry reports, and other media consumed. Read at your own risk!
Jackpot! We actually have two predictions this month. The first is that real headlines are going to put The Onion out of business. Lol, sorry, couldn’t resist.
The second is that people are going to want to see the shoes. What do we mean, exactly?
Pretend you’re shopping for shoes. Rarely do you walk in and buy the first pair that resonates with you. You earmark them, then do a couple laps around the store, making sure you’ve seen everything on the display shelves and considered all your options. You either find something better than the first pair that piqued your interest, or you circle back to the first ones. Either way, you typically don’t buy anything until you’ve seen everything. The same applies to the autumn market. It’s the only time of year that slaps buyers with enough inventory that it requires time to process. Buyers want time to consider their options before making a final decision. This has implications, which leads to this month’s prediction:
We predict that this year’s autumn market will heavily favor underpriced listings.
These are akin to the “sale rack” at the shoe store. The sale rack always gets the most attention, and the good ones get picked clean while others do their lap around the store. Underpricing is how you grab eyeballs and ensure your listing does not get lost in the shuffle during the autumn inventory surge.
Underpricing is counterintuitive and requires a leap of faith for most sellers. But ironically, it provides the best possible price for the home (by means of a bidding war) and ensures the listing garners enough attention to actually sell. This tendency tapers as you move up the pricing pyramid – for example - $10M+ homes generally do not need to employ this strategy whereas broadly approachable price points do.
The autumn market is a very opportune time to buy or sell, but the specific circumstances it provides should dictate any savvy participant’s strategy. That’s where we come in. Understanding nuances like these allow us to provide the best counsel possible to our clientele. If you know anyone who needs an expert team to navigate the tricky waters, you know where to find us. And thanks for tuning in for another edition of our newsletter. See you next month!
Click here to read the San Francisco market report.
Click here to read the North Bay market report.
Arrian, Payton, Sejal, Jennifer, Lorelei, and Colin