I hear this question a lot: What is the best time to sell my home or to buy a different one? Let’s take a look at the retail world of clothing. Consumers get the best deal on summer clothes after July 4th or later, just as they get the best deal on winter clothes at the end of winter. So does this trend hold true for the purchase and sale of homes? Not really. There are some considerations a buyer or seller should think about that could have an impact on the transaction.
What time of the year is a better time for buyers to buy?
First off, you can’t ever time a home purchase. It is not like going out to buy a car or a cell phone. Buying a home is a journey done in your own time and after you have done the research, looked at homes and have your finances in order. At any time there are buyers coming into the market and there are other buyers who have done their research and are serious buyers. No one gets to control this ever changing flow. What is important to remember is that the inventory of homes fluctuates by the season. In spring (March-May in Minnesota), there is an increase of homes on the market and more homes means more options for buyers. It also means more buyers are looking, which means more competition to get that perfect home. While there are fewer homes listed from October-December, buyers may find the best buys during those slower selling months of the year.
When should sellers sell then?
Conventional sellers most likely would not list their home before the holidays or in the dead of winter for obvious reasons (snow and cold….brrrr). But serious buyers really don’t care about the season or timing. They are motivated when they are ready to buy. After the Thanksgiving, Christmas and New Year’s festivities are done, buyers start to think about resuming their home search or entering the marketplace as a new buyer. So what are the pros and cons to listing then? Listing January-June/July, sellers will have more competition, however there will be more buyers in the marketplace looking for homes then. If you list in the “off season” (August-December), you may be ahead because there will still be serious buyers out there and they will have fewer homes to choose from.
So as buyers and sellers strategize about when is the “BEST” time, the reality is – it is never easy, and it truly depends on your situation, what you have to buy or sell, and the market in general. Major retailers like Target can control inventory and monitor competitive activity. In real estate, there is not one buyer or seller – they are all unrelated and disconnected and there are all types of homes at all price ranges making it nearly impossible to pick the “perfect” time to buy or sell. I would be happy to help you figure out what time of the year is best for you to start your home search or put your home on the market.