Here’s Why This Month May Be a Good Time To Sell Your Home
Home prices typically see a rise during May and June, even providing a significant boost over the home’s estimated market value, research has shown. While it may not be a good time to buy, it’s a great time to sell.
According to an analysis of more than 40 million home sales over the past decade by real estate analytics firm ATTOM Data Solutions, May and June offer the greatest home seller premiums — with 10 of the best days to sell in May. CBS reported that home sales in May carry a premium of 13.4% compared to estimated market value, while sellers in June enjoy a premium of 11.7% to estimated market value.
“Among the top five days fetching the biggest home seller premiums, May 23 is the best day of the year to sell a home, producing a premium of 19.3 percent above market value,” Todd Teta, chief product officer with ATTOM Data Solutions, told CBS MoneyWatch. “If you are competing with other buyers in the market during a typically hot selling season, you can expect to pay a premium in today’s market — and it’s amplified by COVID and the tight inventory we have right now.”
Data from the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index revealed that home prices in the 20 major metropolitan areas saw a 12% annual gain in February. Morgan Stanley strategist Vishwanath Tirupattur reported that in dollar terms, that equates to an increase of $35,000 in the median selling price from last spring, according to CBS.
Higher property gains in spring and summer are due to buyer demand. Buyers usually enter the market in the spring and leave by mid-summer, as families like to be settled before the beginning of the school year in August and September, reports CBS. Increased competition then pushes up home prices.
Teta also explained to CBS that while housing inventory may be low for the next several months, ATTOM expects a stabilization in home prices later this year due to a few factors. The foreclosure moratorium for homeowners ends June 30 which may cause more homeowners to sell and President Joe Biden’s proposal to increase the capital gains tax could prompt investors to sell property before taxes rise.
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