Spring home sellers who listed their home for sale in the second half of May maximized their home's sale price last year, according to a recent Zillow analysis, which found that homes listed in the last two weeks of May sold for 1.6 percent more, a $5,600 boost on a typical U.S. home.
Search activity typically peaks before Memorial Day, as shoppers get serious about house hunting before their summer vacation and the new school year in the fall. By targeting late spring, sellers can get their home listed when the most shoppers are looking. When more buyers are competing for homes, sellers can command a higher price.
One big caveat: It's not certain that this year's spring home shopping season will follow last year's pattern, according to Zillow. With persistently low inventory, volatile mortgage rates are creating their own seasonality in the housing market.
"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. "
Mortgage rates have been impacting affordability and sale prices since they began rising rapidly three years ago, according to Zillow. In 2022, sellers nationwide saw the highest sale premium when they listed their home in late March, right before rates barreled past 5 percent and continued climbing. A year later, sellers commanded the highest prices in early June, as many buyers had sat out the prior months hoping that rates would go down. Last year marked a return to pre-pandemic seasonal norms, with the highest premiums commanded in May.
Zillow's research found the best time to list can vary widely by metropolitan area. It was as early as the second half of March in San Diego and Austin, and as late as the second half of November in Phoenix. An experienced real estate agent can help sellers identify the right time to list based on inventory and demand in their local market.
Zillow also found a wide range in the sale price premiums associated with homes listed during their metro area's peak period. San Jose sellers who listed their home for sale in the second half of March were able to pocket 5.3 percent more than any other time of year — an additional $93,200 on a typical Silicon Valley home. Orlando homes, however, only sold for 0.9 percent more during its peak period in early May.
Most sellers don't have the luxury of being able to wait for the right week and the right month to sell, Zillow noted. Timing aside, sellers can still take advantage of other seller strategies to reach the most potential buyers. They can net top dollar by maximizing exposure, focusing on screen appeal and highlighting in-demand features.
Sellers should make sure their agent lists their home on the Multiple Listing Service (MLS) right away. This puts their listing in front of millions of home shoppers, maximizing exposure. Some agents will try to persuade sellers to market their home only to buyers using agents in their brokerage. But the data shows that homes that are not on the MLS sell for a median of 1.5 percent less, a loss of nearly $5,000 for a typical seller.
Today's home buyers are willing to pay as much as 3.1 percent more for certain backyard luxuries. Zillow research finds that a typical U.S. home equipped with an outdoor TV can sell for $10,749 more than similar homes. If sellers also happen to have a pizza oven, outdoor shower or bluestone patio, they should highlight those features in their listing description to add thousands to their sale price.
Zillow research found that buyers pay more for listings that have a complete, immersive online media package. Zillow Showcase listings that have high-resolution images, 3D Home virtual tours and interactive floor plans sell for 2 percent more than similar homes. That's a bonus of more than $9,000 on a typical home.