Mortgage originators might assume that homebuyers and sellers are staying put to avoid losing their low-cost mortgage. However, a recent survey by Clever Real Estate reveals that homeowners have bigger concerns about selling, such as packing up their belongings, uncovering major issues during inspection, and — most importantly — feeling pressured to accept lowball offers. As a result, sellers and buyers may be trying to time their listings with the market.
Although there’s no crystal ball that can precisely determine the best time to sell, a new Zillow analysis found that homes listed in the last two weeks of May sold for 1.6% more on average in 2023, equating to a $5,600 boost for a typical U.S. home.
The study suggests that late spring is an optimal time for sellers, as buyer demand peaks before Memorial Day, driven by shoppers eager to secure a home before summer vacations and the new school year. By targeting late spring, sellers can get their home listed when the most shoppers are looking. When more buyers are competing for homes, sellers can command a higher price.
In 2022, sellers nationwide saw the highest sale premium when they listed their home in late March, right before rates barreled past 5% and continued climbing. A year later, sellers commanded the highest prices in early June, as many buyers had sat out the prior months hoping that rates would go down. Last year marked a return to pre-pandemic seasonal norms, with the highest premiums commanded in May.
However, mortgage rate fluctuations have disrupted traditional seasonal trends. In recent years, the best time to list varied — peaking in late March in 2022, early June in 2023, and returning to pre-pandemic patterns last year in May.
“In the past few years, mortgage rate fluctuations upended the traditional spring home shopping season,” said Orphe Divounguy, a senior economist at Zillow. “Buyers who are on the edge of qualifying for a loan jump in and out of the market depending on what's happening with rates. When rates fall, more buyers rush in, putting upward pressure on prices, which could happen at any time of year.”
The ideal listing period also varies by metro area; in San Diego and Austin, it was March, while in Phoenix, it was as late as November. San Jose sellers who listed their home for sale in the second half of March were able to pocket 5.3% more than any other time of year — an additional $93,200 on a typical Silicon Valley home. Orlando homes, however, only sold for 0.9% more during its peak period in early May.
Most sellers can’t wait for the “perfect” week to list, but Zillow’s analysis include a few recommended strategies to still boost their home’s value.
- Go MLS or Lose Out: Homes not listed on the Multiple Listing Service (MLS) sell for 1.5% less — nearly a $5,000 loss on a typical home. Casting a wider net gets more buyers in the door.
- Highlight Must-Have Features: Buyers will pay up to 3.1% more for backyard luxuries. An outdoor TV alone can add $10,749. Pizza ovens, outdoor showers, and bluestone patios? Even better.
- Invest in Screen Appeal: Listings with high-res images, 3D tours, and interactive floor plans sell for 2% more — over $9,000 extra on a typical home. More eyes on your home mean more money in your pocket.
