With the holiday season typically being a slow time for real estate markets, it might not seem like the ideal time to buy or sell. But despite the colder weather and darker days there are benefits to transacting this month and, as a Realtor, staying top-of-mind as the holiday season approaches.
Why buy or sell during the holidays?
Charles Jaque, president and CEO of RDS Brokerage explains that sellers have the opportunity to stand out among fewer listings and less competition. He explains that leading up to the holidays, people are distracted and their attention strays from big decisions like real estate, so sales typically outpace new listings. That decreased competition can make it a great time to list. “December tends to be the lowest month on average for new listings in Toronto, and this is similar nationwide,” he notes.
Adrienne Lake, managing broker of Corcoran Horizon Realty agrees, “This will continue until January (and) there will be less inventory on the market.” She says these conditions make it easier for homes to stand out and sell against the competition that does exist.
Jaque cautions to manage sellers’ expectations and inform them of market realities. For example, his team’s research shows December pricing in the Greater Toronto Area is about the fourth-lowest throughout the year. He also stresses the importance of checking the number of active listings and reviewing comparables for each specific property type and location.
“It’s one thing to have many options in the market in general, but if you’re listing a condominium in a specific neighbourhood and there’s no other similar supply, sellers can be in an advantageous position,” he points out.
Why this December may be busier than usual
While December is typically a slower month for real estate, this year’s market is already showing signs the holiday season may be extra merry. The reason? Upcoming federal policy change to mortgage rules, set to take effect on Dec. 15.
November saw a year-over-year jump in sales in Canada’s largest cities, including Toronto and Vancouver. Anecdotally, some Realtors are reporting a late-season rush of listings with sellers trying to get ahead of the spring market and buyers preparing to make moves once the new mortgage rules take effect.
Buyers enjoy an easier, smoother, less-competitive purchase
There are more reasons to encourage your clients not to put house hunting on the back burner over the holiday season. For buyers, Lake points out there’s less competition and bidding wars, potentially creating an easier, smoother, more appealing experience. Plus, those putting their homes on the market are typically quite serious.
Jaque has seen this too and points out that people often have to sell. “Otherwise, why wouldn’t they wait until the longer, stronger spring market? Buyers can often take advantage of this strong motivation by finding a good deal.”
What’s more, he says now could be an ideal time to get into the market before it takes off again because interest rates have come down and are projected to decrease again before June.
How to gain exposure and boost performance during the holidays
Decorate but don’t go overboard
Whether you’re decorating a listing for the holidays to integrate with staging, or just making it warm and cozy with candles and the fireplace going, don’t turn off buyers who aren’t celebrating, advises Lake. “The home should be inviting and welcoming for every buyer out there.”
Client appreciation events
Lake says that running a client appreciation event, like a small cocktail hour or brunch, always helps as it gives agents the chance to connect with clients and share what’s going on in the market
Open houses
She says that open houses are a great opportunity to do something special this time of year. “Hire a Santa Claus for photos with pets or little kids. Put a branded tent out front and serve hot chocolate or cider and cookies. Hire carolers. Anything that makes it a little more different,” she emphasizes.
Think outside the box, collaborate and show up for the community
Of course, these things must be heavily marketed for people to know that they’re happening, but Lake strongly advises thinking outside the box, “Because human nature is to just keep doing the same thing over and over again.”
She likes seeing agents collaborate. “If, say, four or five homes are for sale within a square kilometre, collaborate with the other agents, for example with an open house blitz on the same day.”
Jaque agrees, also suggesting toy drives or charitable contributions, or running competitions for Christmas tree decorating or gingerbread making. He feels agents can use this emotional experience to tap into the local community and, “It shows clients you’re thinking of ways to make their property stand out.”
Make it personal and think year-round
Lake says calling clients or prospects a couple of days out to drop off a holiday card or gift goes a long way. “You’re letting them know you’re there and you want to see them. If they don’t have time, at least they know you were thinking about them,” she says.
Jaque stresses the key to improving business performance is taking action year-round, not just during the holidays. “We deal through Realtors 98 per cent of the time, and I’ll typically only hear from them during the holidays.”
He suggests staying top-of-mind with a year-round campaign that includes personal-looking touchpoints. While it doesn’t need to be a hand-signed note, “there’s software that merges first names into a personalized-looking message.”
Jaque admits this is difficult to do at scale, so agents need to be disciplined, block off the time, move through a list and use a CRM so it’s methodical. “Plug away at it consistently—that will be a huge business generator.”
Broaden your scope and scale with a system
Jaque points out that many agents don’t have a system, but top-producing Realtors do, allowing them to scale and repeat. This applies every day of the year, not just the holidays when the market’s slower: “It’s a different type of outreach and relationship building,” he advises. “If you want to really succeed, take the time when others are on vacation and put those extra hours in.”
These are branding opportunities, he points out. “There’s a reason why big retail stores flip the music to Mariah Carey’s Christmas songs. You step inside and feel warm and cozy, ready to spend some money. You can apply that same psychology to your real estate business.”
Credit to: Emma Caplan-Fisher , Dec 09, 2024