The Optimal Timing for Listing a Home According to Zillow's Shifting Trends

While seasonal timing is influential, an eXp Realty broker highlighted that high mortgage rates are the primary concern for sellers, moving beyond traditional market patterns.

What is the ideal moment to put your home on the market? Zillow's latest analysis suggests that this timing has evolved. On March 7, the digital real estate platform shared insights revealing that homes listed in early June 2023 fetched prices 2.3% higher than the average property. This shift towards listing later in the year is a trend that has developed since the onset of the COVID-19 pandemic, according to Zillow's findings.

Emphasizes the impact of seasonality on the housing market. However, he points out that the rising mortgage rates have been the most significant concern for sellers in recent years. Zene-Moore, who also serves as a director at the Greater Boston Association of Realtors, observes, "In the past year and a half, those who have decided to move were driven by necessity rather than desire, especially given the stark increase in mortgage rates."

In the metropolitan area of Boston, the prime listing window of 2023 occurred slightly earlier than the national average, during the latter half of May. Homes placed on the market during this timeframe were sold for 3.5% more than the average home, translating to a $23,600 increase in selling price, as reported by Zillow. This trend is attributed to the relatively lower increase in new listings in Boston and other Northeastern markets, resulting in heightened competition among available homes.

Bonnie Lai, a leading figure at RE/Max's luxe home team and a director at the Greater Boston Association of Realtors, acknowledges the influence of seasonal trends under normal circumstances. Nonetheless, she notes that recent significant events, such as the COVID-19 pandemic and the rapid fluctuations in mortgage rates, have diminished the relevance of seasonal timing. "The extent to which mortgage rates adjust is a critical factor," explained Lai, who also chaired the Women’s Council of Realtors | Greater Boston and Central in 2023.

Reflecting on the broader United States market, Zillow pointed out that the optimum listing period in 2023 shifted by a month compared to 2019. The decrease in mortgage rates from 6.79% to 6.67% for a 30-year fixed loan in June 2023 likely contributed to an increased willingness among buyers to submit offers, according to Zillow's analysis. This adjustment in market dynamics underscores the evolving nature of real estate trends and the factors influencing them.

Among the 35 largest metro areas in the United States, Boston stood out, with sellers experiencing the sixth-largest gain — a $23,600 increase in sale price — when listing their homes during the optimal two-week window identified for the metropolitan area.

This year, the dynamics of the housing market have shifted compared to the previous year, according to Lai. She observes that despite high mortgage rates, buyers are now more inclined to make strong offers, motivated by the low inventory of available homes. This scarcity in supply means that homes ready for immediate move-in are being snapped up quickly. "Buyers are showing readiness to engage in aggressive bidding, reminiscent of the 2021 market conditions where overbidding and waiving of contingencies have become common again," Lai noted.

Olsen anticipates that any potential interest rate cuts might not materialize until the summer, suggesting that the latter part of the year could witness a spike in buyer interest. This forecast aligns with recent trends observed in mortgage rates, which, after weeks of increase, saw a decrease last week. The Federal Reserve chair hinted at possible rate reductions within the year, contingent upon indicators of slowing inflation, although recent reports suggest inflation remains a concern.

The recent dip in mortgage rates, from 7% to 6.8%, could notably impact the selling landscape, Zene-Moore explained. A home listed at $700,000 last week could potentially attract an offer of $730,000 this week, driven by buyer confidence that their investment will stretch further in a market still characterized by a shortage of listings.

In preparation for sale, sellers are advised to navigate the challenges of appraisal gaps, anticipate the high costs associated with moving, and ensure their banking details are correctly set up. Additionally, with an increase in prospective buyers looking across state lines, Olsen emphasizes the importance of sellers establishing a strong online presence for their homes.

To achieve a successful sale, Zene-Moore recommends enlisting a real estate team attuned to the market's current dynamics. Lai further advises sellers to ensure their homes are ready for occupancy and priced competitively, urging consultation with real estate professionals over relying on online valuations. "Many sellers struggle because they depend on inaccurate online estimates, which do not reflect our depth of market understanding," Lai concluded.