Timing the market is essential when selling your house. You want your home to hit the market when buyer interest is highest to command the best selling price. What are the best times of the year to sell your home?
The conventional wisdom
The common understanding of timing the market is that spring and summer are the best seasons to sell a home, and conventional wisdom holds true.
The school calendar influences home buying tremendously. Parents begin their home search during spring, trying to find a home and move in before the next school year starts.
Therefore, the home-shopping season ramps up in early spring—March or April, hits full stride by June, and wanes in late August.
Mitigating factors in timing the market
Some extenuating circumstances can color that timetable, however. Here are a few:
- Markets differ by state and locality. Communities with older populations are less beholden to the school year, and home sales in such markets may spread over the year more evenly.
- People who have sold a home in a higher-priced market and moved to a lower-priced one may be prepared to pay cash rather than take on a mortgage. In such cases, the buyer may again be older and less subject to school concerns.
- Those needing a mortgage may wait for rates to improve regardless of the time of year. High rates during the April-September peak selling season may dampen buyers. Declining rates during the traditionally slower season of November to February might induce buyers to pounce on cheaper borrowing costs.
Pricing
Work with your professional agent to set a reasonable price at the onset of listing. Start with a price that does not cause your house to linger on the market, requiring a price drop.
Statistically, June is the most attractive time of year for the best price, just after the market rises but before it fades into the school year.
If you sell during the slower months of November to February, you may have to deal with buyers pushing you on price. It might be assumed that you are selling under pressure, such as a job change, divorce, or other personal circumstances that force you to sell.
Related – How to Buy a House Before You Sell
