Almost 60% of real estate sales occur in the second and third quarters of the year. The first quarter accounts for under 20% of real estate sales. Sales prices in the second and third quarters of the year are 7-8% higher than they are in the first quarter of the year.
Spring selling season refers to the increase in home sales from April through August. Many real estate agents encourage their clients to list their homes in the spring. This is due to the increased demand and higher average sales prices.
Real estate agents must handle increased business in the spring and summer. They have more showings and clients to work with than normal. But they also must earn enough to offset the quieter first and fourth quarters.
It is hard for brokerages to remain profitable during the first and fourth quarters. Brokerages employ full-time staff throughout the year. But the majority of business occurs in the second and third quarters of the year. While agents are only paid on commission, full-time staff is paid regardless of business levels. The spring selling season can also be very stressful for full-time staff. They must handle an increasing number of requests from busy agents.