The Best Time to Sell Real Estate

Timing can be everything when selling real estate. The real estate market is cyclical. There are long term cycles and short term cycles. For most home owners the long term cycle has little importance. People buy and sell their property when they need to. Often when they are relocating for a new job, or upsizing to a larger home to accommodate a growing family. But the short term cycle can have a greater influence on a sale.

The real estate market ebbs and flows throughout the year. Within this yearly flux there is a noticeable pattern. The market is more active at certain times of the year and selling a home at the peak times can help to ensure a quicker sale and a better price.

The yearly real estate cycle can be seen very well from data on internet searches for real estate terms. Google Trends shows this well with 3 years of search data. We interpret this pattern below.

The Yearly Real Estate Cycle

The short term cycle is influenced by the activities of both buyers and sellers and seasonal influences throughout the year. The market is most active in the spring and early summer. This is the period when there are the most buyers looking for real estate and the most sellers have their properties on the market. But the activity begins well before the bulk of these transactions occur.

The New Year = Information Gathering

At the beginning of the year people are starting to think about their plans to buy or sell. At this stage they begin the information gathering phase. Sellers are researching the market to determine their asking price, and they are beginning to do last minute upgrades to the property. Buyers are looking at the market to determine their budget and see what types of properties are available in their price range.

Buyers are often "tire kickers" at this stage and not willing to commit to a deal just yet.

Spring & Early Summer

At this time of year the market begins to become very active. Sellers have finished their renovations and upgrades and are placing their properties on the market. Buyers begin actively looking for real estate to purchase.

The activity at this stage becomes competitive. Buyers want to find their best opportunities before others do. This drives prices up. Spring and early summer is the best time of year to sell real estate.

Mid Summer

The large burst of activity in spring and early summer begins to taper off. Most buyers and sellers have completed their transactions. Also, school is out and many families are in summer vacation mode.

There are less buyers in the market as most already purchased in spring. Properties that did not sell earlier sit on the market and prices either flatten or drop slightly.

Late Summer & Early Fall

Interestingly at this stage the market picks up again. Not quite to the levels seen in spring but noticeably more active than mid summer. Summer vacations are over and the kids are about to go back to school. Many buyers who did not find what they were looking for earlier are now in a bit of a hurry to buy before the kids go back to school. Moving could mean a different school and generally they want to avoid having the kids change schools while classes are in session.

Also winter is coming and people want to be settled in their new homes before then.

Winter and Holiday Season

The holiday season is not when people want to be moving. Moving is stressful enough. During the holidays people want to spend time with families, not think about real estate. And for the northern half of the USA and most of Canada winter is a miserable time to make a move. Cold weather and snow make it prohibitive. Also it is difficult for buyers to get a full appreciation for a property when it is covered in snow and the trees and shrubs are leafless.

The real estate market comes to a standstill during winter and prices can drop considerably.

New Year - Repeat

In January the cycle starts all over again. Those thinking about buying or selling have decided that they will do so this year. With the holidays over, and a new year begun, they begin the information gathering phase in earnest.

When to Sell Within The Cycle

Armed with this information a seller can determine when best to place their home on the market. Obviously you want your home to be listed for sale during spring and summer. Placing it on the market in early spring, even late winter, would likely be best. Your property gets seen early before more homes come onto the market which may allow for a quicker sale.

Sell during the winter holiday season only if you have to. If you can wait till late winter/ early spring then this would be advisable. You will likely get your best price in spring or summer, and those who choose to view your property during the winter may not be very committed buyers.

Getting Your House Prepared for Sale

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