Conventional wisdom posits that spring is the peak real estate season and winter the slowest. But this is outdated thinking, which hasn’t been true for the last decade or so, said Stephen Kotler, Douglas Elliman’s chief revenue officer.
"Markets have all different perspectives when it comes to seasonality," Mr. Kotler said, noting, for instance, that Aspen sales are hot in the summer and the Caribbean in the fall, "but we’ve seen a good steady flow of activity for luxury real estate throughout the year."
Rick Pretsfelder, a partner at New York-based real estate firm Leslie J. Garfield & Co., generally agreed that there isn’t any specific down time in luxury real estate, although things do typically slow down a bit between Thanksgiving and January, with the week between Christmas and New Year’s being the slowest of the year. But this year, he said, he’s still seeing steady activity. "The office is kind of humming a little bit."
In Los Angeles, Ari Afshar, the estate director with Compass’s Beverly Hills office, also is seeing the same robust activity on top-tier properties. A Bel Air mansion just closed a few days ago for close for $40 million, he said, and he personally has offers out on about $25 million worth of deals. "Things are certainly very active right now," he said.
The increasingly global nature of the real estate business contributes to this year-round activity. "When people have time to travel is when they have time to buy," Mr. Kotler said.
More:Timing a Luxury Buy Right Can Mean Big Savings
In addition, down time only means more time to peruse. "The market does see sales when the more affluent buyers have a little more time on their hands to do some shopping," Mr. Pretsfelder said, adding that he’s taking someone out today (Dec. 23), even though it’s a short day at the office.
"We find that people look to buy when they have time to look," Mr. Kotler said. And when someone is looking at this time a year, it generally means that they’re serious. "Some agents love working over the holidays for this reason," he said.
Sellers, too, tend to be more willing to open their houses up to viewings right now, often because they’re traveling, Mr. Pretsfelder said. "I tried to show properties last week, but people were planning their holiday parties and entertaining," he said. "This week, that has changed, and I’m getting access."
Another reason sales are still happening is because some people want to get in a hefty real estate transaction before the end of the year. That was certainly the case in the auction world, as New York-based Concierge Auctions held a 19-property sale on Dec. 20, with listings everywhere from London to Telluride, Colorado, to Tel Aviv. Among the properties purchased was the historic Kleeberg Mansion, which went for $18.5 million, more than the $13 million to $16 million auctioneers had estimated for its sale.
More:Historic Kleeberg Mansion Beats Price Expectations at Auction
Some of these sellers wanted to unload their property before the end of the year, whether that was for personal reasons or tax reasons, said Concierge’s founder and president, Laura Brady. "And there are still buyers out there," she said.
Mr. Kotler has also seen this same end-of-the-year push from the buy side. "We have more closings in the next two weeks than we’ve had the entire month," he said.
But are they getting a discount for buying right now? Probably not, experts say.
"If there’s a property that’s still on the market that was listed back in June, you might find a tired seller that may be more inclined to strike a deal," said Mr. Afshar. But that’s not a sure thing.
Mr. Pretsfelder thinks most people who haven’t sold yet—and aren’t in a rush to do so—will likely hold off until early next year to see what happens with the economy as President-elect Donald Trump takes office before they accept a discount. "They’ve waited this long," he said. "Why not wait a few more weeks?"
Here’s a look at other news from around the world compiled by Mansion Global;
Trump’s Wealthy Cabinet Might Be a Boon to D.C.’s High-end Real Estate Market
As Donald Trump fills out his cabinet with a team of millionaires and billionaires, Washington D.C.’s high-end brokers are seeing the potential for an upside and working to woo the wealthy new appointees, their staff, and their combined net worth of about $5.6 billion. Though it’s currently tepid, Washington’s high-end real estate market typically sees a bump of around 12% after an election, when the President-Elect’s new cabinet moves to town. This is doubly true of Trump’s staff, which is primarily made up of people who will be new to D.C. This has prompted some brokers to keep properties on the market that they might have normally removed over the holidays."Hey, I was a Hillary person," said Tom Daley of TTR Sotheby’s International Realty in Georgetown. "But from a real estate perspective: Thank you very much. Come in folks. Let’s get you a nice new house." (Bloomberg)
More:Luxury Rentals in D.C. Perfect for Trump’s Incoming Staffers
The 2017 Forecast Looks Sunny for India’s Property Market
India’s real estate market is expected to do brisk business in the coming year, as the nation has rapidly gained status as a top destination for investors and is projected for 7% economic growth after growing 7.2% in 2016. Bangalore and Mumbai have now surpassed both Tokyo and Sydney as high-ranked cities for investment and development opportunity, per the Urban Land Institute’s 2017 report on Emerging Trends in Real Estate Asia Pacific. And while the recent currency crackdown has put a temporary damper on activity, ultimately, money driven out of the black market is expected to resurface in the nation’s real estate industry, creating a net positive. (Forbes)
Parts of Miami’s Slumping Real Estate Market Bounced Back in November
After a year of sluggish numbers, the November report from the Miami Association of Realtors showed the city’s single-family home market back on the rise, even as the condo market continues to slump. The report shows Miami-Dade having its best month for single-family home sales since the 2009 crash, with a 13% year-over-year increase. November also marked the 60th straight month of rising median prices for single-family homes, jumping up to $310,000. Inventory also jumped 7.7%, and the report attributes the spike in activity to buyers and sellers who were waiting until after the presidential election to make a move. And while the condo market still saw further drops in sales volume (deals fell 11.4% year-over-year), the median sales prices for condos is still growing, having jumped 7% to $217,250. (The Real Deal Miami)