When’s the Best Time to Sell Your House?

When’s the best time to sell your house sounds like a simple question. In fact, you’ll find lots of simple answers online. Some people say spring and summer are always best. Others say a seller’s market is the best time to sell, regardless of the season. 

But I want to give you the real answer.

The fact is, there is more than one factor to consider when deciding on the best time to sell your house. You need to weigh factors like:

• General market conditions,
• Buyer demand,
• Inventory of homes available,
• The equity you have in your home,
• Your unique needs, and
• Your plans for the future.

So I want to break down these factors for you today to help you decide when it’s the best time to sell your house based on your unique circumstances.

The Best Time to Sell Your House – Based on Market Conditions

You’ll hear the terms “buyer’s market” and “seller’s market” regularly in the world of real estate. You probably already know that a buyer’s market generally offers favorable conditions to buy and a seller’s market generally offers favorable conditions to sell.  

In a buyer’s market, there are lots of homes available, and not enough buyers to purchase all of the available homes. So homes sit on the market for longer, and buyers have more negotiating power than sellers. And in a seller’s market, the opposite happens. There are lots of buyers, and not enough homes for all of them. So houses go under contract quickly, and buyers are competing against one another, sometimes even starting bidding wars, which drive prices up.

So it makes sense that sellers would rather sell during a seller’s market.

But this simple concept gets more complex if you’re buying and selling. If you’re selling your current home and buying a new one, should you make the move during a buyer’s market or a seller’s market? 

Let’s look at the pros and cons of each market type to determine the best time to sell your house.

Pros and Cons of Selling Your House During a Seller’s Market

Pro: You get a quick sale because buyers are jumping on new listings.

Con: You may need to move more quickly than you planned.

Pro: You generally get a good price; you may even get competing offers.

Con: You’ll also be facing tough competition and higher-than-normal prices if you’re also purchasing a new home.

Pros and Cons of Selling Your House During a Buyer’s Market

Pro: You’ll likely be able to find a good deal if you’re also buying a new home.

Con: You’ll have fewer buyers looking for a home, which generally means getting a lower price for your home.

Pro: You have a little more time to get your ducks in a row since buyer’s markets move slowly.

Con: It will likely take longer to find a buyer. Your house could be on the market for several weeks or even months.

The Verdict

You’re generally better served when you sell during a seller’s market. This is especially true if you won’t be looking to buy a new home. It’s also true if you are downsizing to a smaller home because you’ll get the big benefits of selling your more expensive home during the seller’s market while mitigating the negative impacts of buying by purchasing a small, less expensive home.

However, your personal needs may supersede this general rule of thumb. If you’re looking to upgrade, for example, the benefits of getting a better deal on your upgraded home during a buyer’s market may outweigh the disadvantages of selling your existing home at a lower price.  

There are also times when it might make more sense for you to downsize or sell without buying a new home during a buyer’s market because of your unique circumstances. More on that in a bit.

The Best Time of Year to Sell Your House – Statistically

Often, when people ask when’s the best time to sell your house, they’re asking about the time of year when they are statistically most likely to see the highest values and fastest sales.

Statistically speaking, spring is the best time to sell your house in Connecticut. Summer comes in second place. Then the market typically starts to slow in the fall and winter, with December and January being the slowest months.  

Just take a look at the median sale price trend for Connecticut from Redfin:

The peak median sale prices are all spring/summer months and the slight dips are all winter months.

The time a house sits on the market follows the inverse pattern in Connecticut. Houses sell fastest during the spring/summer and slowest during the fall/winter. So the peaks in the graph below show the winter months when it takes houses longer to sell, and the valleys show the spring/summer months when sales sell fastest.

The Verdict

Selling during the spring and early summer will statistically provide you with favorable results in terms of price and time. If you buy and sell at the same time (downsizing or upgrading), you’ll get a better deal on your sale than your purchase in the spring/summer, and a better deal on your purchase than your sale during the fall/winter.  

You could consider trying to time the market by buying your new home in the winter and selling your current home in the spring to get the best of both worlds. In that case, you would either have a period where you own both homes or a gap where you need to rent or stay with family. Some people are willing to juggle the transaction to maximize profit and savings. Others prefer the simplicity of buying and selling at the same time.

The Best Time to Sell Your House – In the Real World

Statistics will only get you so far. In the real world, there are many more factors involved.

Here are five additional factors for you to consider.

1. Your Current Home Doesn’t Suit Your Needs

Are you living in a home that doesn’t meet your needs? Are you willing to deal with that until the “right” season and the “right” market conditions? Or would it be worth it for you to sell in a statistically less favorable market so you can move into a home that better fits your lifestyle?

2. Your Home Won’t Suit Your Needs in the Foreseeable Future

Maybe your home is working fine for you now, but you know your needs will be changing in the next few years. Retirees, for example, often want to downsize into a home that requires less maintenance, enjoys lower utility costs, and feels cozier. As of May 2021, we’re in one of the hottest seller’s markets on record. You may want to sell now while you can get top dollar for your home. 

3. Your Current Home Requires too Much 

If the maintenance on your current home is costing you too much in terms of time, money, and effort, you might be ready to move to something smaller and more manageable now. It might not be worth it to you to wait until the next “best time” to sell.

4. You Want to Cash in on Your Home to Fund a New Venture

Home values in Connecticut have increased by 16% just since last year. So you might be sitting on some serious equity! Maybe the time is right for you to tap into that equity, regardless of whether or not you’re in the best selling season. If you’ve been dreaming of building a business, starting a non-profit, traveling, helping kids (or grandkids) with college, or making any other dream come true, the proceeds from the sale of your home could fund those dreams.   

5. You’re Simply Ready

Sometimes, you’re just ready to move. Maybe you need a change of environment. Maybe you’re looking for a fresh start. Making yourself wait until the “right” time to sell might not be the best path for you. Many people are willing to sell under less-than-perfect market conditions if it gives you the opportunity to start the next phase of your life.    

The Bottom Line

When’s the best time to sell your house? Whenever you’re ready to sell! 

It’s true that homes sold during the spring and summer months of a seller’s market statistically sell faster and for more money in Connecticut. But if that specific timeline doesn’t work for you personally, it doesn’t matter. Your personal circumstances matter; do what works for you.

How I Can Help

If you have questions about finding the best time to sell your house, contact me. I can help you create a plan to maximize your profit and minimize your time on the market, under any market conditions. 

While I happily serve buyers and sellers all over the Litchfield County and Farmington Valley area, I specialize in helping people downsize. I can help you smoothly sell your home while simultaneously finding your new home.

If you haven’t already downloaded Simplifying Your Life, my free guide to downsizing, grab a copy before you go!