Sellers constantly hear that the best time to sell their home is the summer. Is it true? One of the most cited stats for the proposition that your home will sell for more money in the summer than in the winter is the “average sold price.” This statistic can be misleading because it lumps all homes (small homes and large luxury homes) together in the same bucket.
The reason the average sold price is higher in summer months is because more people with larger more expensive homes choose to sell in the summer vs the winter. Look at it this way, if 10 homes are sold in a week, and 5 of those are large expensive homes, it’s going to create an average sold price that is higher than the average would be if 9 out of 10 of those homes were smaller, less expensive homes
The idea that homes sell slower in the winter is also fake news. In fact, due to limited inventory in the winter months, quality homes may sell faster because there are less homes for buyers to choose from.
Let’s compare apples to apples.* Sellers who sold homes 2,500 square feet or smaller during November of 2016 sold those homes, on average, at a price of $330,629. Sellers selling the same size homes in July of 2016 fetched the slightly lower average price of $328,062. The median days on market for the higher November homes was only 10 days!
*For this analysis we looked at sold homes within a 10-mile radius of Mile High Stadium were (Go Broncos). You may get slightly different numbers in different areas, but you’ll find similar results. Here are the actual numbers: