Seller's Sweet Spot
Planning on selling? Homes listed between May 1–15 sell on average nine days faster and for 1 percent more (about $1,500) than the average listing (nationally), according Zillow. What does this mean? It’s a seller’s market. Why? Low supply combined with high demand.
Housing market dynamics, including low inventory, make the buying season more pronounced in some parts of the country.
The Los Angeles Metro area, compared to the United States overall:
|Metro Area||Ideal Timeframe to List Home||Days Sold Faster than Average||Average Sales Premium (%)||Average Sales Premium ($)||Ideal Day of the Week to List|
|United States||May 1 – 15||9||0.8%||$1,500||Saturday|
|Los Angeles-Long Beach-Anaheim, CA||April 16 – 30||15||1.0%||$5,600||Friday|
It’s a long–known fact that buyers are out in full force during Spring Homebuying Season — and they start searching early, but the reality is that it takes time to find the dream home. “By May, some buyers may be anxious to get settled into a new home — and will be more willing to pay a premium to close the deal,” says Zillow chief economist Svenja Gudell.
Currently, there are 3 percent fewer homes on the market compared to last year. And on top of that, we’ve only seen a moderate increase in interest rates. With the Spring Homebuying Season approaching, this is good news in an environment where mortgage rates are still historically low, which will help offset the pace of house price growth and lack of for–sale inventory in many markets. With the threat of higher interest rates comes higher demand.
What does this mean for buyers? It may be a seller’s market, but understanding the market can help you better strategize. Did you know more houses are listed on Fridays and Saturdays? Also, weather affects the best time to buy and sell. The warmer the weather, the greater the buying competition. Take this info into consideration and start planning now.