If you’re thinking about selling this spring, it’s time to get moving – the best week to list your house is fast approaching. Experts at realtor.com looked at seasonal trends from recent years (excluding 2020 as an uncharacteristic year due to the onset of the pandemic) and determined the ideal week to list a house this year:
“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is approaching quickly. The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”
the week of April 16-22 was identified By examining seasonal patterns in data from 2018-2019 and 2021-2022 (excluding 2020 due to pandemic-related anomalies),. Each week was evaluated based on how advantageous it was for sellers, considering factors such as the level of competition from other sellers (including active and new listings), listing prices, the speed of the market (measured in days on market), the probability of price reductions, and the demand from potential homebuyers (measured by views per property on Realtor.com).
2022 marked another extraordinary period in the housing industry, with prices soaring to unprecedented levels before a widespread lack of affordability caused the market to cool down. At the beginning of 2022, mortgage rates began to rise, resulting in a significant increase in the cost of financing a home purchase, while home prices continued to surge in comparison to 2021. The median listing price of homes peaked at $449,000 nationally in June 2022, with price growth persisting throughout the year relative to the previous year. However, the intense demand from buyers waned around the peak of home prices, as evidenced by fewer pending listings and an increase in the amount of time homes spent on the market.
Positive Signs for Spring
Despite a decline in housing demand in 2022 compared to the previous year, homes still sold much faster than before the pandemic, and the number of available properties remained far below pre-pandemic levels. However, as a result of the market slowdown, sellers drastically reduced the number of new listings they put up for sale. Furthermore, builders responded to this situation by decreasing the pace of single-family home construction, starting in February.
Towards the end of 2022, mortgage rates experienced a slight decline, which allowed certain buyers to resume their search for homes. While home sellers were less active in January 2023 in comparison to the previous year, home prices increased by just 8.1% year-over-year after a year of double-digit growth. Additionally, affordability improved slightly, which indicates that the upcoming spring market could be beneficial for both buyers and sellers.
Deciding to sell
Many potential sellers are motivated by the potential to make money, changing family needs, and new preferences when considering selling their homes. However, the motivations of the youngest generation of homeowners differ, with more than half of Gen Z potential sellers contemplating selling their homes due to affordability concerns, in the hope of finding a less expensive housing option. In contrast, Boomer homeowners are considering downsizing, leading them to consider selling their homes. Irrespective of the reasons for wanting to sell, as the selling season approaches quickly, it is crucial for sellers to allocate sufficient time to get their home ready. According to recent data, 80% of sellers took anywhere from 2 weeks to 6 months to prepare their homes for sale. About 32% of recent sellers spent between one and three months preparing their homes for sale.
If you’ve been waiting
for the best time to sell, this is could be your chance. But remember, if you
haven’t started getting your home ready, you’ll need to move quickly. Here’s
what you should keep in mind.
Work with an Agent To Prepare Your Home
Starting the home selling process as early as possible can yield significant benefits and greater flexibility. According to data, more than half of sellers (56%) took longer than anticipated to prepare and list their homes for sale. Older sellers, specifically those aged 50 and above, had a better understanding of the amount of time required to sell a home. In contrast, younger sellers tended to have more optimistic expectations regarding the preparation time. The experience of having sold a home before might have helped older buyers to have a more accurate expectation of the process. Start by prioritizing which updates you’ll make. In February, realtor.com asked more than 1,200 recent or potential home sellers what updates they ended up making to their house before listing it (see graph below):
As you can see, the most common answers included landscaping and painting. Work with a trusted real estate agent to determine what projects make the most sense for your goals and local market.
If Possible, Plan To Have Your House Staged
Once you’ve made any necessary repairs and updates to your house, consider having it staged. According to the National Association of Realtors (NAR), 82% of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home. The 2021 Profile of Home Staging, a report published every two years, investigates the components of home staging by considering the viewpoints of agents representing both buyers and sellers, the influence of television programs, and buyers' expectations. According to Jessica Lautz, who is the Vice President of Demographics and Behavioral Insights at NAR, staging a home is advantageous as it enables consumers to comprehend the complete potential of a property or space by showcasing it in the best possible light, thereby enabling prospective buyers to visualize its numerous possibilities.
Moreover, almost half of the agents representing home buyers stated that staging a home had an impact on how most buyers perceive the property overall. Staged homes tend to sell faster and at a higher price point because they assist potential buyers in envisioning their future life in the home. These agents also emphasized the significance of visual aids, particularly during the pandemic when purchasing a house. As a result of COVID-19, 83% of buyers' agents acknowledged that including photographs in their listings had become more crucial. Additionally, 74% of these agents considered videos to be more important, and 73% believed that offering virtual tours for their listings had become more critical.
Bottom Line
Are you ready to sell this spring? Contact your Forza agent to plan your next steps. You can start by making a checklist of what you think your house needs to get ready. Then, we can work together to prioritize your list and move forward together.