Buying or selling a property in August: is it a good time?

We share this interesting article by idealista about buying and selling homes during the month of August.

The confinement caused by covid-19 has made more than one citizen rethink the type of housing in which he or she wants to live. And after several months with low sales and buying activity due to the impossibility of visiting the houses, August is presented as a very good month to transmit a house.

The experts consulted by idealist/news assure that the clients who are making visits now are really buyers and not scouts or curious. So much so that Luis Corral, CEO of Foro Consultores, considers the one who stays in August as a "net buyer". "August visits are the best of the year, people really go to buy," the expert adds.

May Iglesias, sales manager of Lucas Fox, says they have noticed an increase in requests for houses, penthouses and ground floors, and floors with terraces, which is what has been the general trend when the good weather arrives.

Below, we detail the reasons given by the various experts consulted by idealist/news to point out that August is a very good month to buy or sell a house:

HOLIDAYS ARE A GOOD TIME TO VISIT HOMES

From Lucas Fox point out that the drop in activity in many sectors favors the month of August, availability of buyers to make visits with more time and be able to compare the product offered.

"In general, August is always a good month to make a purchase or rent, as search engines take advantage of the holidays to visit the properties, especially the international client. Specifically, this summer, unlike other years, the situation of covid-19 is leading to greater interest, proactivity and availability of search engines to find the ideal home," says Miguel Angel Cantos, director of Engel & Völkers Valencia.

Jesús Duque, vice-president of Alfa Inmobiliaria, points out a curious fact that takes place during the summer holidays. While some people put their homes on sale interested in taking advantage of these months, other sellers take them away, with the idea that it is not the ideal time for the sale of their property and with the fear that the home will "burn" for months exposed and without buyers.

May Iglesias, by Lucas Fox, indicates that in August the city is more relaxed and normally buyers are more relaxed so there is more time to look at the properties more closely. He also estimates that international demand is growing as this is the holiday period when international clients take advantage of the opportunity to travel for pleasure and also have time to view properties.

Gregorio Martín-Montalvo, general manager of Solvia, reminds us that August is an ideal free time period to look for homes, study the market and visit the properties, as both estate agents and the sellers and clients themselves usually have more time and flexibility when it comes to coordinating the agendas for these procedures.

BUYERS RETURN TO THE MARKET AFTER CONFINEMENT

This year is special, due to the confinement of the Spanish population. That is why real estate agencies claim that they are serving many potential buyers during this holiday season.

From Engel&Völkers they assure that after the confinement they have doubled the demand for villas with swimming pool in the outskirts of big cities like Valencia. "The seller is aware of all the opportunities that August brings and cannot let them go. There are especially many more opportunities for second homes, on the beach or in the mountains, taking advantage of the physical presence of the buyer in these areas," adds Miguel Angel Cantos.

From Lucas Fox point out that some owners are willing to close before the holidays, so in August you can find apartments with a greater propensity to negotiate the price.

Martin-Montalvo points out that in this sense it is also important to take into account the changes in preferences and search interests compared to the beginning of the year, among which the interest in wider spaces, outdoor spaces and even a change in the areas of preference predominates. 

LESS COMPETITION: MORE VISIBILITY AND LESS ROOM FOR PRICE NEGOTIATION

There are real estate agents who believe that there are fewer properties for sale in August, so there is less room for price negotiation and more visibility for the seller. Luis Corral, CEO of Foro Consultores, points out that "for the seller of a regular home it can be a good time to put his house on sale because there is less competition, less supply in the market. On the coast, on the contrary, there is more offer".

Martin-Montalvo, from Solvia, says that "it is possible that in August there will be less property for sale, as many owners are waiting for September to reactivate the activity. This generates less competition and therefore more visibility. But we cannot forget that this is being a completely atypical and extraordinary year. However, it is important to bear in mind that during these months of the summer season there are also usually fewer searches, as August is the key month for holidays.

Jesús Duque, from Alfa Inmobiliaria, says that in August the person interested in buying or selling has more time, peace of mind and willingness to make a decision of this kind. According to the data that they handle, in the last years every summer about 20% more product goes out to the market and the average increase of sales is about 10%. "Of course, the spring/summer months are a high season for home sales," he adds.

However, Duque recalls that the purchase and sale is by areas. In the coastal areas the increase in sales is close to 15%. Many holidaymakers take advantage of their holidays on the coast to visit and make a dream purchase during the year.

Sales are also growing in the big cities, where buyers generally have less free time and can spend the summer months searching for this type of property. However, in the smaller cities, the increase in sales in summer is not very significant.

In August, international demand is growing as this is the holiday period when international clients take advantage of the opportunity to travel for pleasure and also have time to view properties.

REAL ESTATE AGENTS ARE OPEN TO SERVE BOTH THE SELLER AND THE BUYER

Without a doubt, real estate agencies agree that in August real estate agents are active because it is the time of year when they underpin most sales.

From Solvia they point out that, although it is true that during August the pace of activity in all sectors drops due to the generalised holidays, the real estate market does not stop. "In the same way that sellers and buyers are active, real estate agents also offer attention to those interested," adds the general director Gregorio Martin-Montalvo.

"As in any other type of activity, in the middle of August we can find places where we sit down and are attended to in a wonderful way, with all the time and dedication in the world, or feel on the contrary that the holidays have reduced the workforce and the times are delayed to some extent. Anyway, beyond a matter of minutes, I think the important thing is to be able to identify those real estate professionals with training and experience enough to accompany us throughout the process of buying a home and do it safely and effectively, "says Jesus Duque.

Original post: Why August is a good month to buy and sell a home. Photo by Scott Graham a Unsplash.