Hot Housing Market Cooling? Sell Now, But Prepare for Price Negotiation

• Spring Selling Season: Despite challenges in the property market, the week of April 14-20 remains optimal for selling a property, with peak buyer interest and less competition, according to realtor.com analysis. Home prices tend to be 1.1% higher in late April, potentially maximizing seller profit.
• Challenges for Buyers and Sellers: Rising mortgage rates and asking prices contribute to a difficult property market for both buyers and sellers. Freddie Mac reports an increase in the average interest rate on a 30-year house loan to 6.88%, while the national median asking price for a house rose by 5.7% to $384,500 in February last year. Realtor.com suggests sellers may not receive their full asking price this year, even during the optimal selling window.
• Market Dynamics and Seller Expectations: The lack of housing availability has driven up prices, making homeowners hesitant to sell. However, spring sees a surge in homebuyers, with April, May, and June typically yielding the highest prices for properties. Realtor.com's survey reveals that homeowners expect to sell their homes for $462,000 or more, citing various reasons for selling, including family changes and life events.

The ideal time for homeowners planning to sell this year is still in the spring, but you might want to modify your expectations.

Optimizing Property Sales in a Challenging Market

This aligns with a realtor.com analysis that indicates the week of April 14-20 is still the best time to sell a property since buyer interest peaks in that week, and there is less competition from other sellers. According to Realtor.com, home prices are also 1.1% higher in late April, meaning a seller might make the most profit possible that month.

However, with rising mortgage rates and asking prices, this year's property market is still difficult for buyers and sellers. Freddie Mac reports that the average interest rate on a 30-year house loan increased to 6.88% on Monday from 6.62% in January. In the meantime, the national median asking price for a house increased by 5.7% to $384,500 in February of last year.

According to Realtor.com, such data suggest that sellers this year may not receive their full asking price, even within the market's optimum selling window.

House Prices Beyond Reach?

The lack of availability has contributed to the rising cost of homes for the typical American. Because purchasing another home would require paying higher mortgage rates than they already do, homeowners have been reluctant to sell. Some homeowners are even more hesitant to give up on their wealth growth since they have witnessed the value of their home equity increase.

Nevertheless, a new wave of purchasers arrives in the spring, taking advantage of the longer days and warmer weather to tour open houses and make bids. Approximately 51 million single-family and condo residences were sold between 2022 and 2023, and researchers at real estate data supplier ATTOM discovered that the months of April, May, and June saw the greatest prices for those properties. Typically, sellers receive the most return in May (13% over the median price in their region) out of those three months.

Based on a poll of 1,000 homeowners who want to sell in the upcoming year and 1,000 sellers who have already sold, Realtor.com conducted this study. According to the research, homeowners typically anticipate selling their homes for $462,000 or more. When sellers were getting ready to offer their house, they cited a variety of reasons, including family, downsizing, the desire for more space, and life events like "a new marriage, child, or divorce."