- Research shows homes listed in the first fortnight of June attract price premium
- Sellers stand to make an extra $7,700 on a typical property, Zillow claims
- Experts say America’s property market is finally showing signs of thawing
- Sellers could also see a big drop in costs after the trade body for realtors last week agreed to eliminate a notorious commission scheme
Homeowners looking to sell up may wish to wait until the summer if they want to maximize their profits.
New analysis by property portal Zillow shows home listed in the first two weeks of June typically sell for $7,700 more than they would do otherwise.
By comparison, sellers risk shaving more than 4 percent off their asking price if they wait until December.
The findings of the report are another reason to hold off selling for now – it emerged last week that commission fees charged by real estage agents are set to drop in the summer.
The housing market historically always heats up in the spring and summer months as parents want to relocate ahead of the next schoolyear.
New analysis by property portal Zillow shows home listed in the first two weeks of June typically sell for $7,700 more than they would do otherwise
Sellers’ homes also benefit from fresh flowers and greenery after the winter.
Amanda Pendleton, a home trends expert at Zillow, told CNBC: ‘It’s sort of an ideal time for both buyers and for sellers, and that’s why we just see a lot more activity that time of year.’
Experts claim Americans frozen property market is finally showing signs of thawing. A report by Redfin found the number of new listings jumped 14.8 percent compared to a year ago – the largest annual increase since May 2021.
Prior to the pandemic, May was the hottest month to list a property. However, a volatile mortgage market saw this pushed back to June last year.
According to Zillow’s data, homes listed in the first fortnight of June 2023 sold for 2.3 percent more than average. It equates to a $7,700 boost on an average home.
Prime selling months vary slightly by city though, researchers noted.
For example, in New York, homes listed in the first half of July tended to attract a 2.4 percent premium – or $15,500 in real terms.
Meanwhile sellers in Los Angeles should strike in the first half of May to benefit from a 4.1 percent premium on their home listing. It works out at $39,300 extra.
Prior to the pandemic, May was the hottest month to list a property. However, a volatile mortgage market saw this pushed back to June last year
America’s property market has all but frozen in response to soaring mortgage rates deterring owners from moving.
The average rate on a 30-year fixed-rate home loan is now 6.74 percent, according to Government-backed lender Freddie Mac.
This is almost double where they were in March 2022 when they were hovering at 3.76 percent.
It means a buyer today purchasing a $400,000 home faces paying around $700 per month on their mortgage than had they bought two years ago. This analysis assumes a 5 percent downpayment.
Rising rates have created a ‘lock-in effect’ whereby buyers do not want to give up their cheap deals.
America’s property market has been all but frozen as a result. In the first week of March, applications to purchase a home were 11 percent lower than the same period a year ago, according to the Mortgage Bankers’ Association.
Research out in February revealed the ‘magic’ mortgage rate that will kickstart the housing market.
A majority of prospective home buyers say they would finally follow through with the purchase of a home if rates dipped below 5 percent, according to a new survey by Realtor.com.
There was more good news for sellers last week. They could see a BIG drop in selling costs after realtors agreed to eliminate notorious commission scheme and pay $418 million damages in landmark legal settlement.
Meanwhile, millions of homebuyers could soon be in line for a $10,000 tax credit under sweeping reforms of the housing market proposed by President Biden during his State of the Union address.
