When is the Best Time to Sell a House?

Today, we're talking about something crucial for any homeowner considering selling: timing. When you list your house can significantly impact how quickly it sells and for how much. So, let's dive in and explore the best times to sell a house and some factors to consider.

First up, let's talk about the seasons. Generally, spring and early summer are considered prime time for home sales. The weather is pleasant, and gardens are in full bloom, creating a visually appealing environment for potential buyers. Families often prefer moving during the summer when kids are out of school, making it an ideal time for them to settle into a new home.

But what about the exact time you should list your home for sale? Like down to the day?

Well lucky for you, The National Association of Realtors did some number crunching last year and came up with an exact day for the 50 largest metro areas.

Now I will preface this and say this data was published last year and was used for 2023 projections and it used listing metrics from 2018, 2019, 2021, and 2022. They left out 2020 because well, I think we can all agree that year was a bit of an outlier.

For 2023, they predicted that April 16-22  would be the best week in general to list your home for sale on a national scale.

But when they drilled down to the individual metros, for Dallas-Fort Worth, the week starting March 26th was the best time to list.

And before you jump in and say, “Wait a minute, that’s an old report. That information doesn’t apply for 2024,” I want to go over some of the rational of the report because I think a lot of why that was the ideal time to list remains true today.

Here are some quote from that report:

“For-sale inventory is still well below pre-pandemic levels.”

“Mortgage rates are expected to remain elevated.”

“Supply does not match up to demand.”

“Prices tend to peak later, as does competition.”

“Strong Demand for Well-maintained, Fairly Priced Homes” (Show there are plenty of homes with less than 1 week time on market.)

It’s like they could’ve put the publishing date as today on this report… because this all still applies today. I’ll explain.

So let’s take the line, “For-sale inventory is still well below pre-pandemic levels.”

Looking at the Dallas-Fort Worth market, in January 2024, we had 27,916 homes for sale on the MLS. In January 2019, we had 36,184 homes for sale on the MLS. We are 22.8% under the normal number of homes for sale at this time. 

So this still holds true.

Then the line, “Mortgage rates are expected to remain elevated.” 

Based on economic data that has come out in the beginning of 2024, it’s now projected that the FED won’t decrease the Federal Funds rate in the first part of the year (which many thought they would at the end of 2023). 

See this line from CBS News, “Economists have revised their forecasts following Tuesday's sticky inflation report, with many of them now projecting the Fed's first cut will come later in 2024 than they had earlier forecast. In other words, don't hold your breath for a cut at either of its next two meetings, in March and May.

Earlier in the year, most economists pegged the first rate cut of 2024 for the Fed's March 20 meeting. But as of Wednesday, only 1 in 10 continued to forecast a March rate cut.

So, yeah, looks like mortgage rates are expected to remain elevated.

Now for the third point, the supply does not match up to demand. 

We are currently at three months of inventory. Traditionally we’ve always said that six months of inventory is a balanced market. However, lately, we see at four months of inventory is when the scales start to shift into buyer’s market territory. So, with that understanding, three months of inventory is still in seller’s market territory, which means that there is more demand than supply.

So that point still matches the market of the moment.

The fourth point was, “Prices tend to peak later, as does competition.”

That pattern held true last year too. When we look back at 2023’s market, we see that the median sales price peaked in June when it was at $386,000. While getting at the peak is everyone’s goal, as a seller you may want to think about this - when prices peak later in the season, you’ve got more competition from other sellers fighting for the same bunch of buyers. Historical data shows that June and July is when we typically see the largest wave of new homes hitting the market. More sellers means more choice for buyers and, of course, more competition among sellers. To play it smart, you can beat the rush by getting in early, boosting your already good chances of a successful sale and maybe even getting better deal terms.

Well, so we are four out of four with the report lining up.

Then there was the fifth point of, “Strong Demand for Well-maintained, Fairly Priced Homes”

In our MLS, for January, there were 1,037 homes that sold in seven days or less. We had a total of 6,382 sales. That’s 16% of the homes that sold on our MLS that sold in less than a week. So, yeah, I’d say that if a house is priced well for what it is, then it will move quickly.

So, with all of these supporting arguments holding true for this year as well, perhaps we could carry over the same prediction for this year and say that it is plausible to think that the best time to list your home in DFW this year could also around March 26th. This will allow you to get ahead of the competition while still accessing a good pool of buyers.

Now depending on when you are watching this video, there are some other things to keep in mind. Market trends play a significant role in determining the best time to sell. Keep an eye on local real estate market data. In a seller’s market, where demand exceeds supply, you might have the upper hand, and selling during this time could result in a higher selling price. However, if it’s a buyer’s market, you may want to strategize your listing to stand out.

Economic factors also influence the real estate market. Pay attention to interest rates - lower rates often attract more buyers. Additionally, a strong job market can boost people’s confidence in making significant financial decisions, including buying a home.

Now, if you missed this mark, all is not lost. Timing the market perfectly is incredibly difficult. And sometimes, you don’t have the luxury of picking your perfect list date. Life happens. And the good news is there are always reasons people need to buy and sell real estate. So if you’ve done your part in getting your home ready for the market (oh, and you can check out my video on How to Sell a Home fast for some tips on that), then you’ll be off to a great start.

And if you’re ready to hit the easy button on getting your home sold,  we’re here for you. 

If we have not met yet, I’m Jennifer Shannon. Realtor and Broker Associate at Keller Williams. If you’re looking to sell or buy a house anywhere in the DFW Metroplex, my team and I want to be your real estate resource of choice. Simply reach out by email to me at JShannon@KW.com or by phone or text to 214-803-4444.

If you’re not in the DFW area, Please let me know if my team and I can help in any way. We connect soon-to-be sellers with some of the top Realtors out there. We’re part of an international network of real estate agents where we can verify production and vet top-performing agents to make sure you’re working with a savvy professional wherever you are. If you’d like us to connect you with a trusted and experienced agent, just reply to this email and let me know.

Source: https://www.realtor.com/research/best-time-to-sell-2023/

Source: https://www.cbsnews.com/news/interest-rate-cut-2024-when-will-fed-cut-rates-inflation-experts/