Selling In Early June Could Get Home Sellers An Average $7,700 More

Selling In Early June Could Get Home Sellers An Average $7,700 More

Homeowners planning to sell in early June this year may earn more from the sale compared to those selling at other times of the year. 

A Zillow analysis of 2023 home sales shows a 2.3% increase in home sale prices—about $7,700 extra on the typical home—for those who sold in the first two weeks of June. 

Compare that to the years leading up to the pandemic when the best time to list was early May. Last year, mortgage rates were climbing in May, but they pulled back a little in early June, making a home purchase affordable for more buyers. 

Zillow housing economists expect this year’s home-shopping season to follow a similar pattern. And if the Federal Reserve begins rate cuts mid-year (or later), we may even see a second wave as mortgage rates continue to fall. 

Last year’s sale price premium in early June came after the first spring in over 15 years with mortgage rates above 6% on a 30-year fixed-rate loan. Those rates were rising in May before sliding from 6.79% to 6.67% in early June. 

With more buyers able to afford a home purchase, competition for available homes heated up, and sale prices increased. 

SIZE AND TIMING FOR HOME SALE PRICE PREMIUMS VARY BY METRO

In 2022, sellers across the U.S. received the highest sale premium when they put their home on the market in late March—just before mortgage rates skyrocketed past 5% and kept climbing. Since then, mortgage rates have been impacting affordability and, consequently, buyer demand. According to Zillow research, the best time to list can vary widely from one metro to another. In 2023, the best time to list in San Francisco was in the second half of February, while, in New York, sellers saw the highest premiums in the first half of July. Thirty of the top 35 U.S. metros saw the highest sale prices on for-sale listings between May and early June of 2023. Zillow data also shows a wide range in the sale price premiums for homes listed during peak periods. During San Jose’s hottest time of the year (early June), homes sold for 5.5% more, netting sellers an additional $88,000. Meanwhile, during the same time period, homes in San Antonio sold for 1.9% more. 
Sale price premiums and premium windows for 35 U.S. metros:
  1. New York, NY (First half of July) Sale price premium: 2.4% ($15,500)
  2. Los Angeles, CA (First half of May) Sale price premium: 4.1% ($39,300)
  3. Chicago, IL (First half of June) Sale price premium: 2.8% ($8,800)
  4. Dallas, TX (First half of June) Sale price premium: 2.5% ($9,200)
  5. Houston, TX (Second half of April) Sale price premium: 2.0% ($6,200)
  6. Washington, DC (Second half of June) Sale price premium: 2.2% ($12,700)
  7. Philadelphia, PA (First half of July) Sale price premium: 2.4% ($8,200)
  8. Miami, FL (First half of June) Sale price premium: 2.3% ($12,900)
  9. Atlanta, GA (Second half of June) Sale price premium: 2.3% ($8,700)
  10. Boston, MA (Second half of May) Sale price premium: 3.5% ($23,600)
  11. Phoenix, AZ (First half of June) Sale price premium: 3.2% ($14,700)
  12. San Francisco, CA (Second half of February) Sale price premium: 4.2% ($50,300)
  13. Riverside, CA (First half of May) Sale price premium: 2.7% ($15,600)
  14. Detroit, MI (First half of July) Sale price premium: 3.3% ($7,900)
  15. Seattle, WA (First half of June) Sale price premium: 4.3% ($31,500)
  16. Minneapolis, MN (Second half of May) Sale price premium: 3.7% ($13,400)
  17. San Diego, CA (Second half of April) Sale price premium: 3.1% ($29,600)
  18. Tampa, FL (Second half of June) Sale price premium: 2.1% ($8,000)
  19. Denver, CO (Second half of May) Sale price premium: 2.9% ($16,900)
  20. Baltimore, MD (First half of July) Sale price premium: 2.2% ($8,200)
  21. St. Louis, MO (First half of June) Sale price premium: 2.9% ($7,000)
  22. Orlando, FL (First half of June) Sale price premium: 2.2% ($8,700)
  23. Charlotte, NC (Second half of May) Sale price premium: 3.0% ($11,000)
  24. San Antonio, TX (First half of June) Sale price premium: 1.9% ($5,400)
  25. Portland, OR (Second half of April) Sale price premium: 2.6% ($14,300)
  26. Sacramento, CA (First half of June) Sale price premium: 3.2% ($17,900)
  27. Pittsburgh, PA (Second half of June) Sale price premium: 2.3% ($4,700)
  28. Cincinnati, OH (Second half of April) Sale price premium: 2.7% ($7,500)
  29. Austin, TX (Second half of May) Sale price premium: 2.8% ($12,600)
  30. Las Vegas, NV (First half of June) Sale price premium: 3.4% ($14,600)
  31. Kansas City, MO (Second half of May) Sale price premium: 2.5% ($7,300)
  32. Columbus, OH (Second half of June) Sale price premium: 3.3% ($10,400)
  33. Indianapolis, IN (First half of July) Sale price premium: 3.0% ($8,100)
  34. Cleveland, OH (First half of July) Sale price premium: 3.4% ($7,400)
  35. San Jose, CA (First half of June) Sale price premium: 5.5% ($88,400)

3 TIPS FOR SELLING A HOME FASTER AND FOR MORE MONEY

Zillow’s research highlights three ways to shrink days on market and get a higher sale price for your seller clients.

#1—SCREEN APPEAL IS THE NEW CURB APPEAL

Most buyers today start their home search online. One way sellers can make their home’s virtual presence stand out is by hiring an agent who uses listing tools like Listing Showcase. A Listing Showcase subscription allows the seller to show off their home’s best features with larger high-resolution photos, an AI-powered 3D home tour, and an interactive floor plan. Zillow data shows measurable advantages for Listing Showcase home listings compared to similar listings without the special listing features: 
  • 68% more page views
  • 66% more saves
  • 63% more shares
  • 15% greater likelihood of going pending in 14 days

#2—HIGHLIGHT THE RIGHT FEATURES

Some features, when they’re mentioned in a listing description, get more buyer attention by signaling that the home is more desirable and up-to-date compared to similar listings. More buyer interest means more competition, so these homes generally sell faster and for more money. Mentioning a steam oven or pizza oven, for example, can help a home sell for up to 5.3% more. Mentioning a doorbell camera can help a home sell up to five days faster. 

#3—MAKE STRATEGIC IMPROVEMENTS

Zillow data shows most sellers make a minimum of two improvements to their home before listing it for sale. One of the most common home improvement projects is interior painting. But some paint colors add more (buyer-perceived) value than others. For example, according to Zillow’s latest paint color analysis, homes with a charcoal gray kitchen can sell for roughly $2,500 more than homes with different paint colors in the kitchen. In a nutshell, it pays to know what buyers are looking for. And that awareness should take into account how trending home design on social media can influence buyer perception of value. 

 

By: Sarah Lentz| Bam I March 14, 2024


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