Updated: Jan 6
Many real estate markets are seasonal, so it is important to understand how the selling seasons could impact the value of your home. Real estate markets are cyclical and it is true that homes are sold year round, but you will most likely sell your home quickly and for a better price if you list it during one of the peak seasons in your local market.
In fact, the time of year can affect both buyers and sellers. In many seasonal markets, the best time to sell can also be the best time to buy. Buyers will have more options in more neighborhoods, making it easier to find a home that will suit their family’s needs.
What Is the Most Common Time to List Your Home for Sale?
Most families with kids prefer to move at the end of the school year or the beginning of the summer. This means that most markets experience a surge in property listings late in the spring. While buyers will have more homes to choose from during this time, it also means that there is more competition between buyers for the best homes. This can often drive up the sale prices of properties in the area.
What Does This Mean for Buyers?
This phenomenon has pros and cons for both buyers and sellers. Buyers can benefit from having more choices, meaning that they will probably have several top options rather than one clear winner. This can be a good thing if you are unable to purchase your first choice due to being outbid or because of issues uncovered during the home inspection. However, as we said before, the nicest homes tend to fetch a higher sale price during late spring and early summer than during other times of the year.
If you have flexibility, the best time to buy is in November or December. While you will have fewer options during late fall and winter, sellers are usually more serious about closing the deal and are more willing to negotiate the price. On average, the sale price for residential properties is between 7 and 10 percent lower in January than in June and July.
What Does This Mean for Sellers?
If you are selling one of the more desirable homes in your area, you will benefit from the increased competition that occurs in late spring and early summer. Top properties tend to attract multiple bids, allowing you to fetch a higher sale price. It also means that you will probably sell your home more quickly since you will have other offers to fall back on if the financing does not come through on your top offer.
While it is usually optimal to sell your home during the summer, many moves are triggered by life events that might not happen on this timeline. For example, if you land your dream job in another state, you will need to sell your home as soon as possible so that you can purchase a home in your new city. To learn more about how and when you should sell your home, browse our website or contact our team today