Pumpkin Spice Latte & Fall Real Estate Market!

What can the Pumpkin Spice Latte teach us about the Real Estate Market? Not only in Tampa, but around the country.

The Pumpkin Spice Latte hit the shelves of Starbucks this morning and already stores are worried about selling through their supply. Some stores are taking orders out till September 6th if they don't have it available at time of purchase -- it's coffee people. But 'Coffee People' love some #PumpkinSpiceLatte from #Starbucks.

Has anyone asked why it's so in demand... Well for one it's good. I personally am not a huge fan of it but for a coffee drink -- IT'S GOOD! Second, they have created this atmosphere that while sipping this drink, it's 50 degrees outside, you're on your patio watching the family play in the yard during Thanksgiving! And because of that -- they've created this environment where it's demanded for that specific taste, feel and experience.

Now, let's assume it was offered year around. Yes, it would get ordered. Yes, people would like it. However you just increased the supply and minimized the demand. In turn, creating a lesser-craze for an extremely popular drink. Hence, the real estate market!

First you need to understand... The number one factor affecting Real Estate is the basic concept of Supply & Demand! A lot of people can debate this... but the number one factor affecting your home's value is SUPPLY AND DEMAND. Even think back to the rough times of the recession -- each neighborhood in Florida had 50% of the homes on the market and 1 would sell every 8 weeks! Now, there might be 5% of the homes on the market and 1 sells every 3 days! Supply is low and demand is high. I do agree there are other factors that apply; lending, stock market, buyer qualifications, etc... but those only effect the lender and buyer to buy your house -- it does not effect your home's value as drastically.

So it's fall, your sipping your pumpkin spice latte, and you're wanting to sell your home but have the old school thought, "people only buy in the summer for schools!" So many of your neighbors take their

home off the market... when there were 5% of the homes listed, it's now 2%. Many would argue well the amount of buyers decreased as well. The answer to that is CORRECT. I will not argue. However, what kind of buyers are buying during the Fall, Winter, Holiday Season, and Early Spring? EXTREMELY MOTIVATED BUYERS: job relocation, family relocation, up-size or downsize their current living situation. These buyers are motivated and have fewer homes to search... So in fact -- one of the best times to list your home is mid to late fall. Many of the times the buyer wants to close before Thanksgiving and/or Christmas -- due to limited supply their options are limited. Which means you, as the seller, get to dictate price, contract terms, and minimize your time on the market!

Much of this sounds nice but what are the facts to back it up. These are the actual facts from 2015 compared to 2017 and it happens every year this way. From September to February inventory is down by 10% for the Greater Tampa Bay Area. Home values rise about 3% during this time. Compared to the Summer months where inventory rises by 15% and home values rise at 1.5%. The reason for this dip in home sales is due greatly to Supply & Demand.

So while your sipping your Fall Latte, reading this poorly written article. If you are looking to Sell your home -- chat with an agent who understands how to maximize your value while other agents take a long winter's nap!