If you’re considering selling your home, spring is the time to do it. Historically, it has been the busiest season in the real estate industry, and it’s often a seller’s market even if the overall year is a down year for sellers. Here’s why the spring market is so important and how you can use that knowledge to get ahead.
Why Spring is Prime Time
According to Forbes, 60 percent of homes are sold during the spring and summer months. The demand during this time is higher for a number of reasons.
First, people who don’t need to move but would like to upgrade or downsize their home don’t want to move during poor weather or risk having snow derail their move. Families with school-aged children will also try to avoid moving while school is in session.
Additionally, there is more movement in the job market during warmer months. New grads need a place to live, experienced workers might relocate to a more senior position as the new class of entry-level workers comes in, and corporate hiring budgets reopen following the end of year push to minimize expenses.
All of these additional buyers mean more homes moving more quickly at frequently higher prices.
How to Take Advantage of the Market
If you’re looking to sell your home, list it as soon as the weather starts warming up. The traditional winter slowdown often leaves housing supply limited into the early spring. CNBC is predicting 2016 to be an especially tight market.
As you may recall from your economics class, prices are highest when demand is high and supply is low. Many sellers will wait until the summer to list their homes for the same reason that buyers try to buy during the summer. Later in the summer, many of these homes will have gone unsold and prices will fall as demand drops off. By getting to the market early, you’ll beat the selling rush and early buyers with fewer choices will be more willing to pay a premium for your home.
One other trick to make sure your home moves when the market is hottest is to offer an incentive to buyers to close quickly. Even something small, such as a new appliance or fresh coat of paint, can give a buyer a psychological push to close now.