The Best Time Of Year To Sell Your House
If you had to guess what the best time of year is to sell a house is, what would you say? The majority of people believe its the summer time, but its actually right now. March-May has been the best time to sell a house in Denver for the last four years. But don't take my word for it, lets look at the data.
The graph below (provide by Land Title) shows the relationship between sold properties and active listings over the last three years. Notice the "compression phase" from March-May. Simply put, for the last several years, demand spikes and supply plummets during the spring months.
This year, our annual spring frenzy is in full swing. Last month inventory reached a new all time low of just 3,900 active listings. By comparison, the average number of active listings for the month of February from 1985-2016 is 14,600. Consider also that in housing markets a cross the country, six months of inventory is considered normal; in Denver, we've got five weeks of inventory. To top it off, prices are still increasing; the median home sale price in metro Denver is up 9% year over year.
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Lets look at some more recent numbers. In the graph below, notice that from February - May of 2016, and February of 2017, properties under contract (the green bar) met or exceeded active listings (the yellow bar). For the number of under contract homes to be anywhere near the number of active listings is a telling indicator of a hot market. Notice that in the other months of the year, active listings surpass the number of properties under contract by much wider margin.
What does this mean for you as a seller?
It means right now is the best time of year to sell your house. If you want leverage in negotiations, favorable terms, and top dollar for your home, there is no better time to sell. It is not uncommon for homes that are listed in March, April, or May to receive multiple offers over a few days, be listed for a week or less, and to sell for $10,000 or more over asking price. That's just the tip of the iceberg in terms of what's possible.
If you want to see market forces at work for yourself. Stop by an open house this weekend. How many others came and went while you were there. If you are actively looking for houses, maybe you noticed other buyers and their agents at your last last showing. Go to recolorado.com and find five houses under $400,000 that you like. In a week, check to see how many of them are still active. The bottom line is, if you want the opportunity to get the best deal possible for your home, then now is the time to sell.
If you have questions about potentially selling your house, email me at firstname.lastname@example.org; I'd be happy to help in any way I can.