Traditionally, real estate in the United States has focused around a buying season that spanned from April to October. Overall, the traditional movement of seasons is less likely to dictate the buying and selling of properties than it did in the past.
People who want to sell no longer want to wait for the right moment, and they are more confident that their home will find a buyer whenever they are ready to sell. One reason for this is that today’s market is local, but it is also globalized. Buyers can come from anywhere at anytime. They pay less attention to seasons and more attention to trends of the market and what they want for themselves in the moment. This is just one of the reasons why we now hold more than 95% of our auctions online, providing buyers with the ability to purchase property in a transparent, open forum from anywhere around the world at the tap of a finger.
The Global Appetite for Luxury
At Concierge Auctions, we sell properties around the world year-round simply because our data and sales results have proven to us that seasonality matters less and less. Our buyers are always in the market for something special and the way property is marketed and the offering itself determine interest more than the time of year does.
Our business has spanned 38 U.S. states and 18 countries and over the past decade, we have invested over $20 million in building our database. And, today, we have one of the most valuable Ultra High-Net-Worth databases of active buyers in the industry, spanning 500,000± contacts in 210 countries/territories. More and more, we are seeing opportunistic buyers who purchase on an international scale. Just last week, we sold a 79-acre chateau located just 90 minutes from Paris to a buyer in China; and in June, we auctioned a collection of properties located across the globe during a sale that specifically targeted Chinese buyers and investors in partnership with The Wall Street Journal and Mansion Global.
The sale resulted in a pool of over 50 bidders, nearly $60 million in transactions, and 14 properties sold within a span of just 36 hours — not to mention the ripple growth effect to our brand and database reach, including more than 6,400 subscribers, double site viewership, and nearly 1,000 downloads of the Concierge Auctions’ app. And, this December, we’ll be back at it again.
The global appetite for high-quality real estate is increasing with the level of high-net-worth (HNW) households around the globe. Data compiled by Luxury Portfolio International® and YouGov showed that the international desire for real estate is expected to increase over the next three years driven by demand from the Middle East and Asia Pacific regions. These buyers are comfortable with buying properties in other countries; 15% of Asia Pacific HNW buyers and 53% of Middle East buyers already own in other countries. This growing pool of luxury buyers follows the new rules of global commerce; they are informed, educated, and always on the move seeking the next opportunity.
The reasons for purchasing are always personal and individual. They are sometimes driven by seasonal factors such as having the dream ski house or the ideal tropical retreat. They are often motivated by the desire to want to have a home in a particular location for business, near an educational destination, or simply a city or area where they wish to spend more time and gather family and friends.
Going Against the Grain
Sometimes going against season can work in your favor as well. While there may be fewer properties on the market at some times (such as over the holidays), that might the perfect time to strike. Just as it may make sense to buy a winter coat in the spring season, the time to purchase your ideal winter hideaway might just be as people are putting their skis away for the season.
Above all, the most important factors to consider are less seasonal and more personal. The old adage of not timing the market but instead timing your life comes into play here as do issues of supply and demand.
The First 30 Days.
What we learned from our Days On Market research is that price and marketing are critical to maximizing a property’s first 30 days on market. In some markets, it can be best that those 30 days occur in peak season, but our analysis has shown that selling a property outside of the traditional selling window does not mean that a property will not sell quickly. In fact, based on MLS and property record data, our research demonstrates that often properties either sell quickly for a high percentage of their asking price, or they linger on the market and ultimately sell for a much larger discount of the original list price.
Overall, we've seen that when luxury properties are brought to market, one of two things happens — either the property sells relatively quickly (within 180 days) or it remains on the market for a significant amount of time.
If you are interested in selling your home, it’s important to review what has been happening in your local market and understand your own motivations for selling. While conventional wisdom says the traditional buying season may provide more options, we’ve found that smart buyers don’t watch the calendar, they watch the market.