The best time to list your home is coming up. MARTIN BARRAUD
The best time to sell a home is coming up soon, according to an analysis by Realtor.com.
It found the best week to put a house on the market is between April 14-20. That timeframe combines an optimal mix of high list prices, buyer demand and quicker sales, in addition to fewer price reductions and less competition from other sellers.
“Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year,” said Realtor.com Chief Economist Danielle Hale in a news release. “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price.”
Realtor.com broke down the data behind why April 14-20 is the best time to list a house:
- Above average prices: Homes listed during that week in April tend to be listed for more than houses during other times of the year — and are typically 10.4% higher than the start of the year. If that trend holds, the national median listing could be $7,400 higher than the average week.
- More buyer demand: There are more buyers looking at homes during that time — there are 22.8% more views on Realtor.com that week compared to the average week the rest of the year.
- Faster time to sell: Overall, homes during this week sell about 17% faster than the average week during the year, or about nine days quicker. The average home takes 46 days to sell when listed during that week, or six days faster than other weeks.
- Less competition: There are fewer homes on the market in April, according to Realtor.com, which found 13.7% fewer sellers during this particular week compared to an average week. And nationally, inventory is still roughly 40% below pre-pandemic levels, meaning there’s more competition for fewer homes.
- Fewer price reductions: There is a smaller chance of having to cut the price of a home on the market during that week, too. Realtor.com found 24.6% fewer homes historically see a price decrease that week compared to the average week of the year.
The summer months aren’t a bad time to list a home either. Prices tend to go up over the summer, with peak pricing in June — but that time of year also comes with more sellers, which means more competition.
Mortgage rates will also determine buyer interest. The 30-year fixed-rate mortgage is hovering around 7% as the Federal Reserve continues to weigh when to cut interest rates, which could subsequently lower the cost of homeownership for buyers.
An earlier analysis by Attom Data Solutions found the best time to buy a home was Jan. 9, when prices and demand are lower than the rest of the year, albeit with limited inventory. Apart from Jan. 9, the best days to buy a home by paying the smallest premium is in the fall, with days in October, November and December topping the list, according to Attom.
Existing-home sales grew 9.5% in February to about 4.38 million, the largest increase in a year — although sales declined 3.3% over the same time last year. Median home sales prices rose to $384,500, the eighth consecutive month of year-over-year price gains.
Inventory has started to grow, with about 1.07 unsold units at the end of February, or about 2.9 months of supply, according to the National Association of Realtors.
NAR, broker settlements could change homebuying process soon
But the home-selling experience is set to change as soon as this summer following settlements from major brokerages and the NAR in a series of class-action lawsuits.
The lawsuits alleged a conspiracy between the NAR, multiple listing services and brokers to keep commissions high by largely requiring home sellers to pay buyer-broker commissions, and to require those commissions as part of being listed on listing services. A similar, earlier lawsuit saw a $1.78 billion jury verdict in Missouri in November.
In addition to the financial payout, the NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. That means while they cannot be commented on through the online listing system, they can still be an option consumers could pursue offline and in consultation with their real estate professional.
That also means homebuyers may have to pay for the services of their buyer broker upfront and on their own, instead of relying on the cooperative compensation from the selling agent splitting that commission with them. That could drive up the costs for homebuyers while also lowering the commission sellers might pay.
The NAR has also agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers, often called buyer agency agreements. The NAR has urged its members to use buyer agreements to make sure their clients understand the costs and services they are getting, the organization said.
The NAR said these changes could go into effect as soon as the middle of June, although that timeline is subject to the court approval process.
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https://www.bizjournals.com/dallas/news/2024/03/26/realtor-buy-home-housing-market-price-best-time.html