There are many factors that go into pricing a home and listing it for sale. Is it a seller's market? Are interest rates going up or down? How is the economy? Additionally, your home has different values to you, your buyer and others who have get money from it like insurance and county assessor. Seasonal Factors also effect the value of your home. Should you wait for Spring to list your home? Let's find out what the Worst Month to Sell a House is!
[Read more below or click this link and watch the video on Youtube]
So when is the worst month to sell a house?
First, let me tell you the best time to sell your house - the Spring, but that doesn't mean you should wait to list your home for sale if you are ready to sell now. There are many personal factors to consider before deciding to wait, as well as if the general market could change to a buyers market or interest rates could continue to increase.
According to ATTOM data solutions the peak time is May/June/July--summer. If you add in April, over 15 million transactions happen during those months which is over 12% increase compared to other months. Specifically, July seems to be the best -- you can get 10% more money but May could sell more than 15 days faster. On average, listing your home in May and June you can sell for more than the home is valued at, with about 10 day quicker sale. Buyers are more inclined to close quickly so they are in a home before end of summer, which means your home sells faster and more money in the summer months.
So why do houses sell quicker in the Spring/Summer?
- Weather is ideal for viewing and get movers, though some would prefer cooler
- Many buyers want to be in their home before school starts
- Longer days allow for more looking since there is more light out
Conversely the Fall/Winter slows down and is the Worst Months to Sell a House
- school has started/is starting
- buyers are thinking about the holiday season
- cooling temperatures means more time staying inside, at home
- less daylight so less time to look
This means the best time to sell is in the summer, but the best time to buy is in the winter!
Some areas of the country will see less difference in seasons since they stay the same temperature most of the year. We do enjoy all 4 seasons in North Central Arkansas, so we do see a general slowing in the fall and winter, but it never completely drops off. When school starts there is a definite drop in buyer traffic. We have many people who winter in our area, coming from the North.
The worst time to sell a house seems debatable between October and December. Some references state an almost 6% drop in prices for either month and 10 to 15 days on market longer. Buyers are often focusing on traveling and holidays at this time. Other data shows January and February to be worse than October and December in both money lost and days on Market.
My personal experience is January is the slowest in sales, and September runs a close second with the start of school.
Even though we are currently in the winter, it doesn't mean you should wait to list your house for sale. Right now we have a low inventory, so prices are holding steady. However, if more houses are listed for sale, listing prices will continue to go down. Interest rates are still expected to rise as well. This means a buyer who is financing their home will have less to give to a purchase price, since more of their monthly payment will go to interest.
The best time to sell your house is NOW because no one knows what tomorrow will bring! Talk to your local Realtor about your area to see when the Worst Month to Sell a House is
Even if you don't list now, its a great time to start decluttering so your home is ready to list sooner than later.
If you are ready to list now, download this checklist: Selling your home during the holidays!
