The best time to sell a house often depends on various factors including the local real estate market, the economy, and the condition of your home. However, studies have shown that there are some general considerations that will impact your success when you sell a house.
Seasonality and Housing Market Trends
- Spring: Traditionally, spring (specifically early May) is considered the best time to sell a house. This is when many buyers are actively looking for homes, in part because families want to move during the summer break from the school year. Homes listed in spring often sell faster and at a premium compared to other times of the year -- the median sales price in May is the highest of the year!
- Summer: The real estate market can stay active into the early part of summer as buyers who didn't find a home in the spring continue their search. Home prices remain high in early summer, but as inventory gets snatched up buyers tend to "cool their interest" as the weather also cools.
- Fall and Winter: Real estate activity generally slows down in the fall and winter months. However, while there may be fewer buyers, those who are looking during these times are often very motivated to close a deal. Prospective buyers who are shopping during this period may have extenuating circumstances that force them to pay full market value for a house.
Keep in mind that these are broad trends and can vary based on your local market. For example, in warmer climates, the real estate market might be active year-round. Similarly, in areas with ski resorts or winter vacation spots, winter might be a strong season to woo potential buyers.
Economic Trends
It's also important to consider other factors like the current state of the housing market (buyer's market vs. seller's market), interest rates, and economic conditions.
Interest Rates: When the Fed lowers interest rates, borrowing money becomes much cheaper and it's considered a better time to sell a house. The prospect of getting locked into favorable mortgage rates gets home buyers shopping.
Seller's Market: When there's greater demand for houses than there is inventory, that's called a seller's market. Home sale prices increase during these times, and often houses sell for much higher than their original asking price. For homeowners, this is a great time to sell -- and get potential buyers to pay seller premiums! (And the opposite is true; in a buyer's market home prices tend to fall or else properties sit on the market longer).
Economic Conditions: When the economy is strong (solid GDP, low inflationary periods, sound job market), that presents another good moment to sell a house. Prospective sellers can command a higher listing price when most households are in a strong financial position.
When Your Home Is Ready
Ultimately, the best time to sell is when your property is ready. When you have made all the necessary improvements, fixes, and upgrades to your house -- that's when it's the best time to sell it. Fresh paint and strategic staging is crucial to curb appeal; curb appeal is what boosts the final sale price.
The best help home sellers can get when it comes time to make improvements is actually a real estate agent. Top real estate agents know exactly how to turn a small budget into something that will entice more prospective buyers and higher home prices.
Consulting with a local real estate agent who is familiar with the nuances of your specific market can provide more personalized advice on the best timing to sell your home, and how to prepare accordingly.
Still curious about the best time to sell a house? Why not get free advice from the best real estate agents in your local market?
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