Is Winter the Right Time to Sell?

Spring is known as the time of year to sell a home. Flowers are blooming, trees are lush, and homes generally look their best. However, things are shifting. With the pandemic, people are finding new reasons to move. And with inflation on the rise, folks are concerned about rising interest rates and that means buyers are not wanting to wait to purchase.

According to ShowingTime.com, which reports data from more than six million property showings across the country, the November numbers from 2017 through 2021 show November showings in 2020 and 2021 to be much higher than in the pre-pandemic years. This means that buyers are indeed looking in winter months.

Another reason winter may be a draw for sellers is that purchasers who search for a home in winter are generally serious buyers. A December 2021 blog post by Freddie Mac states that:

“The buyers who are willing to house hunt in a winter market, when there are fewer options, are typically more serious. Plus, year-end bonuses and overtime payouts give people more purchasing power.”

There is still a housing shortage. This shortage has increased with seller uncertainty regarding the market. But sellers should bear in mind that new home construction will increase their competition in the spring. According to the U.S. Census Bureau, there were over 979,000 new single-family housing units authorized in 2020. Labor shortages and supply chain bottlenecks have delayed construction, but many of these homes will be completed in 2022 and these homes will compete with resale properties.

Another reason to consider a winter sale has to do with housing prices. Sellers will need someplace to go, and prices are projected to increase by approximately 3 to 5% over the next 12 months (the percentage varies by expert). Sellers who then become buyers will be paying more in both down payment and mortgage payment. Current rates are still in the low 3’s but are forecast to rise throughout the year.

So, the bottom line is: if you are considering selling your home in 2022, it behooves you to consider selling early on in the year. You will take advantage of serious buyers, less competition from new-builds, and lower interest rates for your next purchase.

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 17 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com.