So you may have noticed that this year the real estate market was bananas right after the beginning of the year, and this is not an uncommon trend, and a lot of people maybe don't think about it or don't understand why that's the case. The reason that the real estate market heats up so quickly after the beginning of the new year is because a lot of buyers wait to start the process until the new year.
There are a lot of factors that go into this. We have the holidays at the end of the previous year, so a lot of people are too busy to start their search at that time, even though prices are usually lower and there's less competition at that time. The other reason is because people have New Year's resolutions. They wanna get out and get into a house this year, and so they start that process at the beginning of the year. And lastly, sometimes the impact of taxes or having a tax break in the coming year might impact a buyer to start looking that year. So a lot of buyers for all three of these reasons start looking immediately after the new year. That's when they start their process of finding a home. Even though they may have been able to find a home for less money and less competition in the previous year, they might not have the ability to do that. And that's why the real estate market gets so crazy at the beginning of the year.
Now some years, it takes a little longer for it to heat up than it does in this year, for example, but there are typically a lot of buyers out looking in the beginning of the year. That's why we tell sellers to prepare their home for market right at the beginning of the year because that really is the sweet spot when you have an influx of new buyers. And for buyers, if you do have the ability to look during the holidays or at the end of the previous year, that's a great time to look so that you don't face as much competition. And that's how the yearly cycle really works with real estate. A lot of buyers come out at the beginning of the new year and that's why you see the craziness in the market.
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