Spring is a great time for cleaning your home — and selling it, according to a new analysis.
Researchers at real estate data provider ATTOM examined about 51 million single-family and condo home sales over the past 12 years and found that those homes sold for the highest price in April, May and June. Of those three months, sellers tend to get the biggest return in May — 13% above their area’s median price.
“[N]ow may be the perfect time to put your home on the market,” ATTOM researchers said.
By comparison, homeowners who sold their properties in April and June typically see an 11% premium, while the percentage drops to around 7% between October and January, ATTOM said. Americans typically buy more homes in the summer than any other part of the year, averaging 5.1 million sold in June, 5 million in August and 4.9 million in July, according to ATTOM.
Timing exactly when to put up the for-sale sign might be even more critical this year as economists predict tough sledding for both buyers and sellers. Real estate agents expect house hunters to ramp up their efforts over the next few months, but sellers have been hesitant to list their property — deterred by the prospect of having to get a pricier mortgage following 10 straight interest-rates hikes by the Federal Reserve. Buyers have also had to contend with elevated mortgage rates and prices.
The average 30-year fixed rate mortgage hit 6.4% in April, up from about 5% the year prior, according to St. Louis Federal Reserve data.
What’s more, demand for homes skyrocketed in 2022 and builders couldn’t keep up with the pace, driving prices for existing homes even higher. The national median home sale price hit $424,000 in March, up from $415,000 in February, according to the most recent data from the National Association of Realtors.
The housing market slightly favors sellers for now, in part because supply has reached its lowest levels since last April, said Andy Walden, vice president of enterprise research strategy at Black Knight.
“On top of that, March saw deterioration in supply among 90% of major markets,” Walden said in a new report. “New listings aren’t filling the gap either — 30% fewer properties hit the market in March as compared to pre-pandemic norms.”