New Zillow research suggests the spring
home-shopping season may see a second wave if mortgage rates
fall
- A Zillow analysis of 2023 home sales finds that homes listed in
the first two weeks of June sold for 2.3% more.
- The best time to list a home for sale is a month later than it
was in 2019, a change likely driven by mortgage rates.
- The best time to list can be as early as the second half of
February in San Francisco, and as
late as the first half of July in New
York and Philadelphia.
SEATTLE, March 7,
2024 /PRNewswire/ -- Spring home sellers looking to
maximize their sale price may want to wait it out and list their
home for sale in the first half of June. A new Zillow® analysis of
2023 sales found that homes listed in the first two weeks of June
sold for 2.3% more, a $7,700 boost on
a typical U.S. home.
The best time to list consistently had been early May in the
years leading up to the pandemic. The shift to June suggests
mortgage rates are strongly influencing demand on top of the usual
seasonality that brings buyers to the market in the spring. This
home-shopping season is poised to follow a similar pattern as that
in 2023, with the potential for a second wave if the Federal
Reserve lowers interest rates midyear or later.
The sale price premium registered last June followed the first
spring in more than 15 years with mortgage rates over 6% on a
30-year fixed-rate loan. The high rates put home buyers on the back
foot, and as rates continued upward through May, those prospective
buyers were reassessing and less likely to bid boldly. In June,
however, rates pulled back a little from 6.79% to 6.67%, which
likely presented an opportunity for determined buyers heading into
summer. More buyers understood their market position and could
afford to transact, boosting competition and sale prices.
"The old logic was that sellers could earn a premium by listing
in late spring when their home would be on the top of the pile of
listings when search activity was at its peak. Now, with
persistently low inventory, mortgage rate fluctuations make their
own seasonality," said Zillow Chief Economist Skylar Olsen. "First-time home buyers who are on
the edge of qualifying for a home loan may dip in and out of the
market, depending on what's happening with rates. It is almost
certain the Federal Reserve will push back any interest-rate
cuts to mid-2024 at the earliest. If mortgage rates follow, that
could bring another surge of buyers later this year."
Mortgage rates have been impacting affordability and sale
prices since they began rising rapidly two years ago. 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.
Zillow's research finds the best time to list can vary widely by
metropolitan area. In 2023, it was as early as the second half of
February in San Francisco, and as
late as the first half of July in New
York. Thirty of the top 35 largest metro areas saw for-sale
listings command the highest sale prices between May and early July
last year.
Zillow also found a wide range in the sale price premiums
associated with homes listed during those peak periods. At the
hottest time of the year in San
Jose, homes sold for 5.5% more, a $88,000 boost on a typical home. Meanwhile, homes
in San Antonio sold for 1.9% more
during that same time period.
"Most sellers don't have the luxury of timing the market. The
best time to list is when it makes the most sense for their lives,"
said Olsen. "Regardless of the month, sellers who list their home
for sale this spring can expect plenty of interest if their home is
marketed and priced right. That's why it's more important than ever
to hire a real estate agent with the experience to localize your
strategy when comparable sales might be further afield. Harvesting
near record home equity to support your next purchase or retirement
is still possible."
Zillow data finds there are other unexpected ways to sell a home
faster and for more money in today's market. These three tips can
help:
- Screen appeal is the new curb appeal: A vast majority of buyers
start their home search online. Sellers can make their listing
stand out on Zillow by hiring an agent with a Listing
Showcase subscription. It allows sellers to highlight their
home's best features with larger, high-resolution photos, an
AI-powered 3D home tour and interactive floor plan. Zillow data
finds Listing Showcase listings receive 68% more page views, 66%
more saves, 63% more shares and are 15% more likely to go pending
in 14 days, compared to similar nearby non-Showcase
listings.
- Highlight the right features: Certain home features, when
mentioned in a listing description, can signal to a buyer that a
home is desirable and up-to-date. As a result, those features can
help a home sell faster and for more money. Mentioning a steam oven
or a pizza oven in a listing description can help a home sell for
as much as 5.3% more, while a mention of a doorbell camera can help
a home sell five days faster.
- Make strategic improvements: Zillow research finds that most
sellers make at least two improvements before listing their home
for sale. Interior painting is one of the most common projects
sellers take on. However, it pays to be strategic when picking
paint colors. Zillow's latest paint color analysis finds homes with
a charcoal gray kitchen can sell for about $2,500 more.
Metropolitan
Area
|
Best Time to
List
|
Price
Premium
|
Dollar
Boost
|
United
States
|
First half of
June
|
2.3 %
|
$7,700
|
New York, NY
|
First half of
July
|
2.4 %
|
$15,500
|
Los Angeles,
CA
|
First half of
May
|
4.1 %
|
$39,300
|
Chicago, IL
|
First half of
June
|
2.8 %
|
$8,800
|
Dallas, TX
|
First half of
June
|
2.5 %
|
$9,200
|
Houston, TX
|
Second half of
April
|
2.0 %
|
$6,200
|
Washington,
DC
|
Second half of
June
|
2.2 %
|
$12,700
|
Philadelphia,
PA
|
First half of
July
|
2.4 %
|
$8,200
|
Miami, FL
|
First half of
June
|
2.3 %
|
$12,900
|
Atlanta, GA
|
Second half of
June
|
2.3 %
|
$8,700
|
Boston, MA
|
Second half of
May
|
3.5 %
|
$23,600
|
Phoenix, AZ
|
First half of
June
|
3.2 %
|
$14,700
|
San Francisco,
CA
|
Second half of
February
|
4.2 %
|
$50,300
|
Riverside,
CA
|
First half of
May
|
2.7 %
|
$15,600
|
Detroit, MI
|
First half of
July
|
3.3 %
|
$7,900
|
Seattle, WA
|
First half of
June
|
4.3 %
|
$31,500
|
Minneapolis,
MN
|
Second half of
May
|
3.7 %
|
$13,400
|
San Diego,
CA
|
Second half of
April
|
3.1 %
|
$29,600
|
Tampa, FL
|
Second half of
June
|
2.1 %
|
$8,000
|
Denver, CO
|
Second half of
May
|
2.9 %
|
$16,900
|
Baltimore,
MD
|
First half of
July
|
2.2 %
|
$8,200
|
St. Louis,
MO
|
First half of
June
|
2.9 %
|
$7,000
|
Orlando, FL
|
First half of
June
|
2.2 %
|
$8,700
|
Charlotte,
NC
|
Second half of
May
|
3.0 %
|
$11,000
|
San Antonio,
TX
|
First half of
June
|
1.9 %
|
$5,400
|
Portland, OR
|
Second half of
April
|
2.6 %
|
$14,300
|
Sacramento,
CA
|
First half of
June
|
3.2 %
|
$17,900
|
Pittsburgh,
PA
|
Second half of
June
|
2.3 %
|
$4,700
|
Cincinnati,
OH
|
Second half of
April
|
2.7 %
|
$7,500
|
Austin, TX
|
Second half of
May
|
2.8 %
|
$12,600
|
Las Vegas,
NV
|
First half of
June
|
3.4 %
|
$14,600
|
Kansas City,
MO
|
Second half of
May
|
2.5 %
|
$7,300
|
Columbus, OH
|
Second half of
June
|
3.3 %
|
$10,400
|
Indianapolis,
IN
|
First half of
July
|
3.0 %
|
$8,100
|
Cleveland,
OH
|
First half of
July
|
3.4 %
|
$7,400
|
San Jose, CA
|
First half of
June
|
5.5 %
|
$88,400
|
|
About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate
to make home a reality for more and more people. As the most
visited real estate website in the United
States, Zillow and its affiliates help people find and get
the home they want by connecting them with digital solutions,
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financing and renting experiences.
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#10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a
Zillow affiliate.
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