Homeowners looking for the biggest payout on their residential sales may wish to wait until the first half of June before listing their property.
According to a new data analysis of 2023 home sales by Zillow (NASDAQ:Z, ZG), properties listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical home.
Zillow noted that last June saw a mild decline in mortgage rates, which may have fueled greater activity from buyers looking for the best financial deal.
However, Zillow also acknowledged that not every market generated the best sales prices for sellers. Last year, the second half of February was the best time for listings among San Francisco sellers and the first half of July was the right time for sellers in New York City. Furthermore, 30 of the top 35 largest metro areas saw for-sale listings command the highest sale prices between May and early July last year.
“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 Zillow Chief Economist Skylar 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.”
Separately, the Fannie Mae (OTCQB: FNMA) Home Purchase Sentiment Index (HPSI) increased 2.1 points in February to 72.8. Last month, 65% of consumers polled by Fannie Mae said it’s a good time to sell a home, up from 60% in January.
“The HPSI increased for the third straight month, continuing its slow but steady rise from the low-level plateau observed through much of 2023, and consumer sentiment toward housing now rests firmly above where it was this time last year,” said Doug Duncan, Fannie Mae senior vice president and chief economist. “Consumer attitudes toward home selling conditions increased markedly in February, with current homeowners, in particular, expressing greater optimism that it’s a ‘good time to sell,’ a development that may foreshadow an upcoming increase in existing home listings. Additionally, despite the recent uptick in rates, consumers remain relatively optimistic that mortgage rates will decrease over the next 12 months. If their expectations come true and rates move closer to the 6% mark by the end of 2024, as we currently expect, then it’s likely that consumer sentiment on both sides of the transaction will improve, perhaps leading to a further thawing of the housing market.”
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