Part 2 to my: Current Sellers “Wait Till Spring”? Yeah Right. Lose $10,000, which focuses on sellers that put their home on the market around September and whether they are better off trying to get a deal done in December, vs waiting until Spring to get a higher price. My data showed that they got $10,000 LOWER if they waited until Spring.
The question that I still have is:
If you have a home for sale that is “ready” (a fully staged Arlington Virginia Home), are you better off waiting until January 1st (or Spring) to list your house?
LIST TODAY (Dec 1st) PROS:
- Inventory is lower, less to choose from for buyers.
- Everything seems stale and leftover. Maybe put a hot listing on, and those that are actively looking will jump on it, even in December?
LIST TODAY CONS:
- Fewer buyers. There are 2x the # of buyers (lookers) in Jan Vs Dec.
- Source Google Trends: MLS HOMES
- The more Days on the Market, the lower the price tends to go. You have a better chance of selling your house the first week it is listed, especially if you can get 2 interested parties.
- A TON MORE LISTINGS in Jan. Yes there is more demand (buyers) but there is a TON MORE SUPPLY.
So I ran some numbers (I don’t really trust numbers, but lets see…).
I looked at all homes in Arlington that were listed on 12-1-06 through 12-10-06 (Dec Listed) and compared how they did to listings that were put on the market 1-1-07 through 1-10-07 (Jan Listed), this is what I found:
This shows me:
- There are 20% more new listings in Jan vs Dec. (vs 100% more traffic from buyers)
- Homes sold 30% faster in Jan
- Homes listed in January were 40% MORE likely to sell within 2 weeks.
- BUT The actual % of Original Price was only .3% difference ($1,500 on a $500k place).
- The Median price was $100k off, that doesn’t mean homes went up 20%, just the type of home was a little different. I pretty much ignored that number.
Based on these numbers, with most weight placed on the % of list, I think it doesn’t really matter when you list it. I’ve said this about Market Timing for buyers, I guess it applies for sellers too.
Supply and demand already works itself out, I still don’t believe you can BEAT the market. (ie more buyers, and more listings).
But Frank, you said Dec was better for buyers!
Yep, my Market Timing for buyers post says that you shouldn’t time the market, but if you find yourself in Dec, you might get a better deal since there are fewer buyers. I guess that might NOT be true after all. Sorry about that.
– Written by Frank Borges LL0SA- Broker FranklyRealty.com (please report typos)
Also see Jeff Royce’s Taking Your House off the Market for Winter?