Lisa and Steven Callahan went back and forth over the past year over whether to sell their five-bedroom house on a quiet cul-de-sac in Newport Beach’s Bonnie Bay Highland neighborhood.
They finally pulled the trigger and hired a real estate agent – just in time for the holidays. He wants to show the house even though the Callahans are especially busy these days and are planning to host Christmas dinner for more than 20 people.
Will they really be willing to drop everything, clean up and take off whenever potential buyers want to tour the house? Can homeowners with children and friends really be that painstakingly organized at this time of year?
“I’m going to have to be,” said Lisa Callahan, seated in her living room in November as her real estate agent and a photographer surveyed the 4,200-square-foot house.
Many sellers take their homes off the market or stop looking between Thanksgiving and Jan. 1. But some real estate agents say that’s a mistake.
“Most agents capitulate,” said Gloria Jewell, an agent with Teles Properties in Laguna Beach. “I say absolutely not. I have written up more offers on New Year’s Eve, Christmas Eve and Thanksgiving than you can shake a stick at.”
Home sales do fall with temperatures. The slowest months last year were January and February, with 2,431 and 2,252 home sales, respectively; many of those contracts were written around the holidays.
Some economic and global factors suggest there could be especially good reasons to accelerate plans to purchase or sell homes this winter instead of waiting until the traditionally busier spring and summer homebuying seasons.
With the Federal Reserve Bank pulling back its support for the economy, interest rates are expected to increase at some point in 2015, though last year’s forecast for rising rates did not pan out. The Fed has kept short-term interest rates near zero since 2008.
“The Federal Reserve ended QE3… this means there will be pressure in coming months for interest rates to rise,” said Scot Campbell, a broker at Coldwell Banker-Campbell Realtors in Huntington Beach. “Savvy buyers want to purchase while interest rates are low.”
Some agents also cite a U.S./China visa agreement that took effect in November. The changes allow multiple entry visas spanning 10 years to be issued for business travelers and tourists and five years for students. China already represents one of the fastest sources of international real estate buyers, according to the National Association of Realtors, and the latest visa policy should encourage even more Chinese citizens to invest in real estate in Southern California, the agents say.
For many, selling now isn’t a choice. They may have to put a home on the market because of a job change, a new business venture, divorce or other personal issues that have nothing to do with the traditional homebuying calendar.
Steven Thomas, who analyzes the Orange County housing market at ReportsOnHousing.com, said it’s a myth that spring and summer are better times for homeowners to sell. Each of the seasons presents advantages and disadvantages.
“During the spring market, sellers may encounter more buyer activity, but there will be more competing sellers as well,” he said. “During the holidays, buyers may come across less competition, but there will be a lot fewer homes for them to look at as well.”
However, with little price appreciation these days from month to month, waiting to sell until this spring is “fruitless,” he said.
“It may be the busiest time of the year where demand peaks, but it is also a time where the potential of too many homeowners opting to place their homes on the market and at unrealistic prices could lead to a major buildup in the inventory,” he said in his most recent report.
Paul Monte, an agent at First Team Real Estate, said he’s never experienced a slump at this time of year.
“It’s always been, in my 30-some years in the business, my busiest time of year,” he said. “A serious buyer is out looking at property during the holidays.”
Monte has come up with a strategy to lure buyers, even when they’re focused on just having fun.
“My tradition is to have an open house on Thanksgiving Day,” he said. “I tend to have open house on the beach somewhere. I choose a coastal house, where there’s going to be a lot of Thanksgiving day celebrations around it.”
Passers-by follow the signs, he said, “because they can’t believe there’s an open house.” Once inside, he gives them some incentive to stick around: “I always have a Thanksgiving appetizer and some warm cider.”
Truong Pham, a homeowner selling his four-bedroom house in Orange for $499,900, also has been capitalizing on the holiday season, with Christmas tunes playing as potential buyers tour the residence.
“Buying a home is an emotional process,” said Pham, a real estate investor. “With holiday music going on, (it’s) warm and cozy. It’s a perfect opportunity.”
Garrett and Jessica Harvey’s real estate agent held an open house at their three-bedroom Costa Mesa house, listed at $479,900, on a day you’d think everyone would be at the mall: Black Friday.
“People are out shopping, so why not shop for a house?” said Garrett Harvey, a graphic designer. Their Realtor, Devin Doherty of Keller Williams Realty, said more than 100 people showed up, and 200 more prospective buyers went through the home that weekend.
Doherty said he also “significantly underpriced” Pham’s and the Harveys’ properties to create demand, and each seller received multiple offers. The Harveys’ house is now in escrow. Counter-offers have gone out on Pham’s house and a deal is expected imminently.
“Yes, it is a little more hectic to have it listed during the holidays,” said Newport homeowner Lisa Callahan, who is selling her house for $1.9 million. “Trying to schedule showings and open house with family and friends coming to town to stay is a bit challenging, but Jeff (her real estate agent) has made it really easy. We sat down and wrote out a schedule for the first 10 days and he said we will go from there.”
Over the holidays, said Jeff Stokes of Coldwell Banker Previews International, the Callahans’ agent, “The buyers are more serious. And the sellers are more serious.
“It’s not like we’re in the mountains where there’s snow on the ground. We’ve got the best weather in the world. People are always buying.”
Contact the writer: mkalfus@ocregister.com
