Thanksgiving is a time to eat til you hate yourself, to be thankful for everything you have, and to be with family. Until the day after, when the shopping madness begins. Black Friday is the biggest shopping day of the year. Named Black Friday when businesses would run at a financial loss (in the red) all year long and Black Friday indicated the point at which retailers begin to turn a profit, or “in the black.” On Black Friday, we look for the best deals when it comes to retail, but does real estate experience any deals?
According to real estate trends, the Thanksgiving weekend does not see much of a decrease in activity. The decline in real estate activity only lasts as long as it takes to digest that Turkey. Thursday is typically the slowest day, with Friday picking up steam again, and by Saturday the market is back to where it was. The Thanksgiving weekend only sees a six percent decrease in open houses compared to the previous weekend. For serious home buyers, this is the weekend to be looking.
The reason for the decline and then the sudden spike in activity is because once we’re over a major holiday hump, we’re still on break and have more time to look. This is also true around Christmas and New Years. The warmer states also appear to see less impact due to the holidays. New Hampshire sees the biggest decline of 60 percent while warmer states, like Hawaii and California, see only around a 10 percent decrease.
Homes this time of the year typically are priced less. While people are out saving on iPhones and flat-screen TVs, you could be saving on your next home. There are fewer people out looking for homes this time of the year, which gives buyers the upper hand. Many people who are selling their home are doing so for good reasons, either personal or trying to sell their home before the end of the year for tax purposes. The negotiating power is in the hands of the buyer. Homes are already priced lower this time of the year, but with less competition, the buyer’s offer is usually accepted. Also, people don’t realize that property taxes are based on the price you pay for a home. If you buy a home for less, you will be paying lower property taxes.
So if you’re looking to buy a home this holiday weekend, don’t let Thanksgiving deter you from your goals. As people are scoring deals on the latest technology, you could be saving on your future home. According to Trulia.com, homes are around $3,000 – $12,000 less than their fair market value. Also, if you’re looking to sell your home this coming holiday season, there are still people out there looking to buy.