December is indeed a merry month, especially for real estate agents. According to a study conducted by Realtor.com, there was a jump in real estate activity during the second week of December. The study showed a 10-percent rise in signed contracts from the previous week, followed by a 5-percent bump in closings.
From Thanksgiving through New Year's Day, there are 20 percent fewer $1 million-plus listings. However, this is not a bad sign as these listings only stay an average of 35 percent more days on the market compared with the peak buying season in May and June. The said study involved 10 major real estate markets including New York, Chicago, Washington D.C. and San Francisco from January 2014 through September.
The study uncovered that during the last weeks of the year, a surge of luxury homeowners make huge sacrifices. With costly holiday getaways and impending expenses for the next year, they are willing to let go of their properties for a lower price. This is why there are tons of last-minute shoppers who go hunting for a bargain and why real estate agents hardly want to go on a vacation.
International Realty agent Rick Edler shared that on Thanksgiving Day, while he and his family were watching "The Good Dinosaur", he sneaked out to close a deal. That day, he sold off a $3 million home in California's Palos Verdes Estates.
Palm Realty Boutique agent Karina Pacific on the other hand, had to opt for a staycation. Last July, she listed a Palos Verdes residence which used to be a onetime home of NBA's Sasha Vujacic. At that time, the 3,455 square foot beach house went for $3.6 million. To attract interest, she dropped the price to $3.4 million two days before Thanksgiving. The holiday price cut garnered interest from an all-cash buyer in China.
