Pros & Cons of Listing your House in the Winter vs. Spring

In a traditional real estate market, age-old wisdom suggests that the best time to list a house for sale is in the spring. This is typically a time when the home looks its best and when more buyers are searching for homes. However, as most people have realized by now, 2014 exhibited anything but traditional real estate trends. In today’s current market, it may actually be wiser to list a house right away, regardless of the season or how frightful the weather outside might be!

Looking specifically at Needham and Brookline, two of the hottest markets in the Greater Boston Area, it is fascinating to see how much the landscape has changed in just one year. According to data from MLS Property Information Network, from 2013-2014 the average sale price on all single-family houses and condos jumped from $859,577 to $967,479. Historically, this large of an increase typically occurs over a 5-10 year period, but now the average sale rose just as much in only one year. Over the past couple of years, offers have been accepted more quickly, and as a result, houses have been selling at a much faster rate.

While it is not possible to truly know the market trends for 2015, it is conceivable that we could make accurate predictions based on what current data suggests and through conversations among industry professionals. In combining and analyzing this information, one can anticipate the real estate market to continue its ascension throughout all seasons this year. Current buyers can attest to this prediction, as they are also purchasing houses in the winter despite having fewer homes to choose from.

When a homeowner is considering selling his or her house, it’s important to look at statistics from the past year. In comparing December 2013 vs. December 2014, Benoit Mizner Simon & Co. has seen interesting changes in regard to homes being sold. This past December, there were fewer homes listed for sale, but more offers were accepted with higher offers. Homes sold a day and a half quicker, price per square foot went up 10%, and the average sale price went up nearly 20%. Equally as astounding is that December’s average sale this year was nearly 20% higher than the average for all of 2014 (which means that December 2013 was practically equal to all of 2014 prices).

In addition to December’s statistics, it is also important to compare the data from properties listed between January 1st through February 28th and April 1st through May 31st in 2014. In the two months of winter, 141 houses and condos were listed and sold, compared to 301 listed during the spring months. The average sale price was $92,890 (10.3%) higher for the spring homes, accepting offers four days quicker, at $11 more per square foot (only 2.4%).

Supply and demand plays a significant role in current real estate. When there are a lot of buyers and inventory is low, prices go up, which is what started the recent real estate boom. Typically, there is a surplus of homes on sale at one time, because every homeowner in the neighborhood thinks that they can get a ridiculous amount of money for their home. Once buyers have made their purchases, supply is still high and demand is low, which results in a decrease of prices. The ideal situation to sell is somewhere in the middle of these to extremes, which is where the current real estate market sits and should remain over the next six months.

The fact of the matter is that selling a house comes down to a bit of luck, good marketing by a strong, qualified real estate broker, and most importantly, showing a home at its best and offering a quality product that is properly priced. The best advice for homeowners who are looking to sell their home in the near future is to contact a couple of real estate professionals in their area and ask them their opinion and if they have any best strategies to suggest. Homeowners should think about their Realtor’s advice and also consider their own personal preferences when coming up with the best plan for selling their home.

LISTING IN THE WINTER:

Pros:

- Less competition as new inventory is lower. Homes still on the market from fall & summer are stale.

- A Realtor uses most recent sales comparisons to determine the value of a house. Knowing that the prices in the fall were high, this helps improve winter asking prices. It is gamble as to whether or not winter numbers will be high enough to help spring asking prices.

- If a property has some exterior flaws, Realtors can tell potential buyers that this is the absolute worst the home will ever look. This eases the fear of a buyer not knowing what they’re really getting, compared to seeing the property looking at its best.

- Some buyers fear the idea of a bidding war so want to buy when there is less competition. Also, since there were so many of these bidding wars throughout the year, each time someone(s) lost out on a house and these buyers are still out there looking.

Cons:

- Homes typically don’t show as well in the winter.

- A possible blizzard could ruin an open house or cancel a showing.

- Less buyers in the winter, typically.

- People are generally not as happy in the winter, which leads to less excitement about homes.

- Historically speaking, prices are higher in the spring.

- If trees create privacy from neighbors, they may be bare in the winter, reducing privacy.

LISTING IN THE SPRING:

Pros:

- More buyers in the spring.

- Property shows better in nicer weather with trees and flowers in full bloom.

- If you have a pool or garden, it will be open, showcasing a top feature.

- Buyers looking to move in before the next school year start to look in the spring and aim for a summer closing.

- With more buyers, there is a greater chance for a bidding war, not only to get you a higher price but also to have leverage over buyers in getting terms more agreeable for the seller, such as a closing date of their choice or waived contingencies.

- A property may seem more private with trees in full blossom.

Cons:

- Higher inventory so greater competition.

- A unique home will not sell as quickly usually in the spring, so homes that may require a special buyer are running the risk that these buyers may find something else first.

- A homeowner looking to sell runs the risk of the economy going down over the next few months.

- If the winter market does slow down, assessors could have more difficulty finding favorable comparable homes in the preferred price range.