What are the slowest times in real estate?
Typically, winter time is the slowest of the year to sell a property, specifically November, December, and January. However, there are some exceptions because there are several conditions that affect the housing market.
Sellers can net thousands of dollars more if they sell during the peak months of May, June and April compared to the three slowest months of the year, October, November and December, according to a 2023 report by ATTOM Data Solutions.
Winter is usually the cheapest time of year to purchase a home. Sellers are often motivated, which automatically translates into an advantage to you. Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce.
As you may have guessed, the worst months to sell a house are typically during the winter months. December and January stand out as the hardest months for sellers. The winter, coupled with buyers being preoccupied with the holiday season, often leads to a slowdown in property estate activity.
In general, home prices go lower during the late fall and winter, when most people are focusing on holidays and less people are home-shopping.
Historically, May was the best month to sell a house, but that changed to March in recent years. In 2019, homes listed during the weeks of March 11 and 18 sold fastest. Keep in mind, we omitted irregular data from 2020. If you're hoping to sell for more than the asking price, aim for the week of April 22.
Best Time to Sell Your House for a Higher Price
April, June, and July are the best months to sell your house in California. The median sale price of houses in June 2023, was $796,400, which is expected to grow more in 2024.
Mortgage rates are expected to come down in 2024, and inventory and home sales are likely to increase. Homebuyers and sellers can also expect prices to continue to rise, albeit at a slower clip than the past couple of years.
While it's true that recessions can create opportunities to purchase homes at potentially lower prices, it's not guaranteed. Waiting for a recession to buy a house may not be the best strategy as home prices could remain high regardless of a recession.
Specifically, the end of May and June typically see the most home sales. However, summer is often cited as the most expensive time to buy a house — with prices potentially as much as 10% higher. This is partly because many families want to purchase a house before their children start a new school year.
At what point do most house sales fall through?
- The buyer's mortgage financing falls through. ...
- The home inspection turns up major damage. ...
- The appraisal is lower than the sale price. ...
- The buyer can't sell their old home. ...
- There are issues with the title. ...
- The home isn't insurable. ...
- The buyer is inexperienced.
Typically, the longer you hold on to your home, the better you will fare financially when it comes time to sell. Five years is generally considered a good rule of thumb in the industry, but it's not mandatory.
The Bottom Line
How long should you own a house before selling it? There's no "magic moment" that indicates when you should sell your house. However, it's a good idea to consider the 5-year rule and whether your equity will offset your costs and fees.
Age doesn't matter. Counterintuitive as it may sound, your loan application for a mortgage to be repaid over 30 years looks the same to lenders whether you are 90 years old or 40.
There is no age limit to a mortgage application. If you have a substantial down payment and a steady income (which can include pension and Social Security payments), you have a good chance of approval regardless of your age.
Buying a house at 25 instead of 35 could mean spending tens of thousands of dollars less on the same house, meaning a higher overall return on your investment. The third major advantage of buying a house before you turn 25 is the net savings you will attain over time.
It's also a good idea if the home isn't exactly pristine, as a furnished house can help mask those slight imperfections that show up when it's empty. And last, but perhaps most importantly for some, furnished homes typically sell faster than unfurnished ones, and they often attract slightly higher prices.
The best day of the week to list your house. Thursday is the sweet spot for listing your home for sale. This is mainly because house-hunters tend to plan their in-person home tours for the weekend, when they're not at work, and pre-weekend listings are fresh in their minds.
Expectations of an earnings rebound in 2024 suggest earnings could continue to drive the market higher. While some valuations are stretched, there is still room for the market to grow if earnings estimates are met.
If you're unable to pay all the bills included in your monthly budget, you know you're in too deep. Further, if you can't imagine a way to come up with the extra funds needed, selling your house could make sense. Before selling, though, make sure you have someplace else to live.
Will market improve in 2024?
1. Positive returns -- but smaller than in 2023. I think that the overall stock market will deliver positive returns in 2024. However, I expect those returns to be somewhat smaller than they were last year.
30-year mortgage rates are currently expected to fall to somewhere between 5.9% and 6.1% in 2024. Instead of waiting for rates to drop, homebuyers should consider buying now and refinancing later to avoid increased competition next year.
At its December meeting, the Fed signaled it would cut the federal funds rate three times in 2024—resulting in a 0.75% rate cut by year's end. Most economists anticipate any rate cuts won't happen until the second quarter, at the earliest.
| Product | Interest rate | APR |
|---|---|---|
| 30-year fixed-rate | 6.615% | 6.696% |
| 20-year fixed-rate | 6.352% | 6.454% |
| 15-year fixed-rate | 5.760% | 5.891% |
| 10-year fixed-rate | 5.622% | 5.805% |
Because a decline in disposable income affects prices, the prices of essentials, such as food and utilities, often stay the same. In contrast, things considered to be wants instead of needs, such as travel and entertainment, may be more likely to get cheaper.
