A prevailing belief in real estate is to never sell your home during the winter months. Why? Because industry experts and agents have perpetuated this myth without taking a good honest look at the numbers. And unfortunately for home sellers, it means that they’ve been encouraged to wait until the spring peak to list their homes.
As we know, the price of any item is determined by its supply and demand. With respect to residential real estate, when there are many people looking to buy a new home but the supply of housing in the market is limited, the price of housing increases.
Studies show that homes listed in the winter offseason not only sell faster than those in the spring, but sellers also net more above the asking price at this time. The reason for this is simple.
According to the National Association of Realtors (NAR), the supply of homes for sale dramatically increases every spring. As an example, here is what happened to house inventory at the beginning of 2017:
From this, we can see that the number of houses for sale on the market was substantially less in the winter months than in the months of spring. In other words, putting your home on the market now instead of waiting for increased competition in the spring might make a lot of sense. Here’s why:
Taking Advantage of Low Inventory
Since most sellers are waiting until spring to list, local inventory falls during the winter months. However, there are truly motivated buyers still out there who are ready to move and don’t want to wait long before purchasing a home.
The National Association of Realtors states that 55 percent of all buyers who purchased their home at the time they did, did so because “it was just the right time.”
However, just to bring you back down to reality before I get you too excited to sell your home, you’ll typically find that you’ll have fewer showings during the winter months. With that being said, the potential buyers who do visit your home will be more inclined to write you serious offers than the ones who visit during the high inventory peak months. As a result, your home will likely sell faster than it would have during the peak season, and with a limited inventory, you’ll also be in a great position to negotiate.
Buyers in the market during the winter months are truly motivated purchasers. They want to buy now. With limited inventory currently available in most markets, sellers are in a great position to sell their homes for a higher price.
Please don’t hesitate to get in contact with me if you need someone to explain exactly what’s going on in your neighborhood and to discuss your options!