Happy New Year to you! Having the new year in mind and looking ahead, we often get asked when is the best time to sell real estate. Which by the way, is a great question, so here is our answer.
We have three different types of years in Real Estate. The most common one is a traditional cyclical year. In a normal real estate market year, you have two peaks and two valleys. The two peaks would represent the Spring and Autumn markets which are when most people want to sell their homes.
Spring Market
The reason to sell in the Spring market is because the weather is nice and properties show well at this time of year. People want to make the move in the summer when packing and moving in good weather will be better. Finally, because you can move into your new home and settle in before the school year starts. The Spring season normally starts mid February and ends around the first week of July. Since this is the strongest time of year to sell and it’s the longest peak, properties for sale can push price to test the market conditions and potentially sell for top dollar.
Fall Market
In the fall, you have a shorter market starting in mid September and ending in the first week of December. The second wave at this time of year is because people that missed the Spring want to sell before Christmas. Most importantly, they want to avoid moving in the dead of winter. The Autumn market is shorter and harder to produce positive results. Properties need to show their very best and be priced properly.
The second type of year one can experience in a reversed year. If we are starting the year in a down market or a Buyer’s market sometimes the Spring market can be a bust. Suddenly the market can get super hot and you end up having a very strong second half to the year. This is created by a frenzy of buyers that realize the market is shifting and they need to act quickly. We saw markets like these in 2009, 2014, 2019.
Unpredictable Market
The third type is an unpredictable market. It’s the type of year where it doesn’t matter what time of year it is, real estate sells like it’s water in the dessert. This type of market is fun for no one except for someone who is cashing out and not needing to buy. otherwise, this market can burn out the savviest of buyers and the best real estate professionals out there. We have seen this market recently in 2020/21 due to the pandemic but we also saw it in 2015/16.
All that said, when is the best time to sell? Well, it is whenever it makes sense for you. As you can see the market can be highly unpredictable so trying to time the market is quite difficult. Depending on your goals and needs we may be able to narrow things down for you a bit better. Please feel free to reach out to discuss your individual situation.
To keep up to date with the latest market conditions follow this link to the market update: https://www.rebgv.org/market-watch/monthly-market-report.html