While the real estate market lacks the depth, liquidity, and volatility of equity markets, timing still plays a critical role in helping realize the full potential of your assets. If you plan on selling your home, specific times, and market conditions play an important role in choosing the right time to list your home.
The ideal time to sell your home begins at the beginning of spring and continues well into summer. This is mainly because businesses experience sales increases right after winter, and the backlog of demand should result in quicker closings and better rates than in other seasons during the year. However, this is an oversimplification; the best time to sell your home also needs to factor in various broad-based macroeconomic factors, the available inventory, and demand at the local level. In this article, we will explore the relevant factors to get you started.
The best time to sell your home would be in a seller’s market when there isn’t much inventory on the market and a lot of buyers are competing for a small handful of properties. This gives sellers plenty of pricing power. Here’s how we can determine the current market conditions.
As mentioned earlier, seasonal variations have a substantial impact on the pricing power of sellers and may even result in a few thousand dollars between different months of the year. An important aspect to consider when selling your home is that during the holidays, there is a winter slowdown in November, December, and January when the market slows for the holidays before picking up pace again starting in March.
Even if your house goes on the market during the right season, you will be forced to deal with diminished bargaining rights if there is plenty of competition on the market when you put your house up for sale. This results in having to wait longer to find the right buyer, eventually leading to some sellers accepting offers that were lower than their original asking price.
Local real estate markets are heavily influenced by national and global macroeconomic policies and conditions. The fiscal and monetary policies of the Federal Government and Federal Reserve are critical factors that determine the fluctuation of real estate markets and the rates that buyers and sellers use to determine market value for homes. Over the past two years, real estate markets in the United States have witnessed a steady uptick despite the ongoing pandemic. This was mainly due to the stimulus package and historically low-interest rates.
No matter the motivation for selling your house, the factors mentioned above are a few critical components that must be considered in your decision to get the right deal.
Laurens Michaels Real Estate Partners is a leading agent in Clearwater, Florida, with a wealth of experience in this field. Working with firms like these can help you get the perfect advice on current market trends and the best time to sell your home.