May Listings Bring In $5K More For Sellers

Late May is the best time to maximize profits on a home sale as shoppers buckle down for a purchase before summer vacation.

A new Zillow analysis found that homes listed in the last two weeks of May sold for 1.6% more. That puts $5,600 more bucks in a typical seller’s pocket.

Historically, shoppers buckle down in the last weeks before summer, wanting to make a purchase before vacations and the new school year. Sellers who freshly list in those weeks are likely to get more eyes on their house, which means the potential for more demand and a higher offer.

But the report cautions that this buying season might not play out based on historical guidelines.

“In the past few years, mortgage rate fluctuations upended the traditional spring home shopping season,” said Orphe Divounguy, a senior economist at Zillow. 

“Buyers who are on the edge of qualifying for a loan jump in and out of the market depending on what’s happening with rates. When rates fall, more buyers rush in, putting upward pressure on prices, which could happen at any time of year. ”  

Rates dropped to 6.73% last week, causing a surge in both purchase and refinance activity. Though home price appreciation has been cooling across the country, prices are generally still trending up.

Sellers’ locations make a huge difference as well. Though May is typically the best time to sell, buyers in San Diego and Austin, TX, tend to bite in March, while Phoenix sellers have the best luck in November.

Zillow recommends sellers show off desirable features like luxurious backyards, and invest in high-resolution images and 3D home tours for online shippers.