In November we wrote about the misconception that selling a home in the winter is worse than in the summer. Research for that article prompted us to dig a little deeper to examine the best time to list, not just in terms of ultimate sales price, but additional factors such as days on market, discounts, concessions, showing traffic, etc.
Based on our research of sales in the six county metro over the last two years, the earlier in the year you list, the better off you are. This is incredibly valuable information for sellers who are trying to decide whether to list now, or wait until later in the summer.
DAYS ON MARKET
The chart below shows the days on market and different price points at various months throughout the year. Over the last 2 years, it took an average of 25 days on market (DOM) from list date to contract date. Homes listed in March went under contract in the fewest days (21). Days on market increased to an average of 33 days (that’s 50% more marketing time!) for homes listed July through November.
This chart below compares the date listed with the percentage of homes that needed a price cut. On average, 27% of homes listed in the last 2 years needed a reduction in price from the initial list price before selling. Only 19% of homes listed December through March needed a reduction compared to 35% of the homes listed July through September.
The average discount (last ask price vs. sold price) for homes sold in the last 2 years was 0.0%. Expensive properties sold at an average 3.3% and entry level sold at a 0.8% premium. The discount varies by month. Largest premiums (overall market 0.8%) were paid for properties listed in March and April. By the time June rolls around discounts become deeper for the remainder of the year.
MORE EXPENSIVE HOMES NEED MORE PRICE REDUCTIONS
Not surprisingly, a higher percentage of homes over $450K needed reductions. However, there are some interesting differences within the higher price points. For example, homes in the $450K-$650K range were just as likely as a luxury homes over $1MM to need a price reduction. The most affordable homes are more likely to be priced right without the need for a reduction. Perhaps the lack of availability of true comps for higher priced homes is part of the problem.
DIFFERENCES IN CONCESSIONS
The month in which you list also appears to impact the amount of concessions. On average, 31% of properties were sold with a concession. Concessions were a little less prevalent in March and April listings (27% of the time) and more so for properties listed in September through December (35%).
We analyzed other factors, such as expired and withdrawn, showing traffic, and the additional DOM time, on average, for properties that were priced to high, i.e., needed a price reduction. If you would like the complete analysis please reach out to one of First Alliance Title’s Account Executives at 303-558-6623
*The data we analyzed was based on information from REcolorado and Centralized Showing Service.