If you are ready to make a move, the first question you might ask yourself is “When is the best time to sell my home in Denver?” Every season brings different challenges to the Denver real estate market. If you sell your house at the wrong time, you might be leaving money on the table. If you wait out the market and list one month later, you might make significantly more – or significantly less. Some data shows that if you correctly pick the best time to sell your home, it is possible to increase the profits on your house by over 75%. Couple that with taking advantage of saving thousands from my low commission listings and you could be in for quite a windfall.
What Factors Determine The Best Time To Sell My Home?
Many markets are cyclical and not surprisingly, the real estate market is no exception. Year after year, regardless if we are in a buyers market or a sellers market – the cyclical trends are relatively unchanged. To determine the best time to sell, I will use the past 5 years (2015-2019) to look at the number of buyers looking for homes, the number of days it takes for a home to go under contract and the median sales price of homes that sold. Mortgage rates and job growth affect timing a market as well, but these are factors that can fluctuate during any season.
Housing Market Demand - When Do The Most Buyers Look For Homes?
To be a seller, you need to be able to find a buyer. The more buyers that are in the market, the better chance you have to sell your home for more money and in a shorter time. To determine which months have the most buyers looking for homes, I will look at two different sets of statistics: pending listings and showings per listing.
Pending Listings: This chart show us which months have the most homes going under contract.
According to Pending listings, May is the best time to sell your house because it had the most homes go under contract 4 out of the past 5 years with June coming in second. April, July and August round out the top 5. I will assign point values (5 through 1) for each of these months.
Showings Per Listing: Pending Listings only really tell half of the story when it comes to Denver housing market demand. There are more homes on the market during the spring and summer, so l think it is important to also look at how many buyers are looking at each listing each month to help us determine demand.
There May be less inventory to look at in the winter and early spring, but we get an idea of the number of buyers relative to the number of listings by looking at showings per listing. March had the most showings per listing 4 out of 5 months. April is a strong second, February, January and May round out the top 5. Again we will assign point values of 5 through 1 for the top 5 months.
Days On The Market
Nobody wants the house they are selling to just sit on the market. Shorter days on the market typically represents a better market for sellers. Lets see which months have had the shortest number of days on the market.
June had the shortest number of days on the market and July was a close 2nd. May, August and April finish out the top 5. Again we will assign point values of 5 through 1 for the top 5 months
Median Sales Price
Arguably the most important factor in determining the best time to sell your home is when you can get the most money for your home. The last data set we will look at is the median closed price.
When we look at the Median sold price for each month, it is important to understand that the home went under contract 30 to 45 days before it actually closed. Due to this time delay, we will assign the points to the previous month. June had the highest sales price 4 out of 5 years, so May will get the most points. I am assigning double points for sales price because of its importance. May gets 10 points, April gets 8 for second, June, July and March complete the top 5.
The Results Are In and The Answer to Your Question, "When is the Best Time to Sell My Home?" is...
According to historical real estate data, the best time to sell your house (have it go under contract) is May followed by April and June. You are more likely to get the most money for your home in May or April. The end of March through the middle of April is the best time to get your Denver area home on the market. With tax refunds in their pockets, nicer weather for moving in the forecast, and summer break from the kids’ school coming up, it’s easy to see why spring is typically the most popular time to buy and sell.
|Shows / Listing||5||4||1||0||0||0|
|Days On Market||1||3||5||4||2|
|Median Sold Price||2||8||10||6||4|
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