Traditionally, spring is the season when home sales heat up. But if you plan to sell, waiting until June to list it might help you fetch a better price.
Last year, homes that were listed for sale in the first two weeks of June brought in an average of 2.3% — or $7,700 — more, according to an analysis of 2023 home sales released recently by real estate website Zillow.
That marks a shift from the years before the COVID-19 pandemic. Prior to the pandemic, homes consistently sold for more if they were listed in early May.
As it turns out, last year’s shift might all come down to mortgage rates. During the spring of 2023, mortgage rates topped 6% on a 30-year loan for the first time in more than 15 years. They continued to climb through May.
However, in June, they suddenly fell from 6.79% to 6.67%, Zillow says. Although the dip was modest, it was enough to cause buyers to jump into the market.
Last year wasn’t the first time mortgage rates largely determined the best month to put a home on the market.
In 2022, March was the best time to get the highest price when selling a home. That is because mortgage rates shot up soon after March and continued to rise throughout the following months.
In a summary of the findings, Skylar Olsen, Zillow chief economist, says:
“The old logic was that sellers could earn a premium by listing in late spring when their home would be on the top of the pile of listings when search activity was at its peak. Now, with persistently low inventory, mortgage rate fluctuations make their own seasonality.”
Olsen says home buying activity could jump again later this year if the Federal Reserve cuts its target federal funds rate and mortgage rates follow downward.
How to sell your home in 2024
Selling your home isn’t simply a matter of putting a “for sale” sign on your front lawn during a couple of magic days, however. You need to take steps to separate your humble abode from the pack.
One good way to get an edge on your competitors is to make sure your house features some of the “10 Surprising Features That Boost Your Home Value.”
Avoiding unforced errors is also key to moving your property. So, make sure to read about the “12 Costly Mistakes Home Sellers Make.”
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