Why Summer Home Buying is So Hot
Tuesday, July 23, 2013
FoxBusiness.com -- June 21 marked the first day of summer. But to Realtors, only one season matters: home-buying season, which occurs annually from March to September.
Seasonality presents important implications for buyers and sellers, and is naturally most pronounced in markets with seasonal change. But other factors like the school year and expiring leases have a lot to do with home-buying season as well.
... But a recent paper, "Correcting for the Effects of Seasonality on Home Prices," by Norm Miller, et. al., published in the Winter 2012 issue of The Appraisal Journal, argues that seasonal adjustments are necessary.
"Sales occurring in the thinnest time of the year often sell for lower prices, and the reverse holds when comparing spring sales to an appraisal in December. If no adjustment is made, there will be bias and error in the valuation," the paper states. (Full Story)