In Colorado, we have a seasonal housing market. Historically speaking, inventory is lowest during the month of December, then builds month by month, peaking in May, June and July. Sales activity follows a similar path, with one small adjustment - whereas the peak inventory months are during the summer, the peak sales months occur in the spring - usually March, April or May.
In other words, sellers list in the summer, but buyers buy in the spring.
So when should you put your home on the market? Obviously, to catch the March - April - May spring buyer surge, you want to be on the market before the buyers show up.
Take a look at month-by-month listing and sales activity for 2011:
| LISTING AND CONTRACT ACTIVITY, MONTH BY MONTH (DENVER MLS) | |||||||
| 2011 | ACTIVE LISTINGS | UNDER CONTRACT | |||||
| JANUARY | 17,890 | 2,667 | |||||
| FEBRUARY | 17,358 | 2,841 | |||||
| MARCH | 17,707 | 3,092 | |||||
| APRIL | 17,847 | 3,775 | |||||
| MAY | 17,888 | 3,321 | |||||
| JUNE | 18,026 | 2,903 | |||||
| JULY | 17,583 | 2,960 | |||||
| AUGUST | 16,631 | 2,637 | |||||
| SEPTEMBER | 15,533 | 2,663 | |||||
| OCTOBER | 14,156 | 2,850 | |||||
| NOVEMBER | 12,634 | 2,342 | |||||
| DECEMBER | 10,993 | 1,756 | |||||
The peak sales month last year was April, while the peak listing month was June. This trend is one I have seen year after year throughout my nearly 18 years in the business.
My interpretation of why this happens is that, based on hundreds of conversations through the years with buyers and sellers, buyers (especially first-time buyers) make up their minds to purchase over the holiday season and engage quickly once the new year begins.
Sellers often work on a school-year calendar, and assume that listing their home in May or June will allow them to move over the summer, creating the least amount of distraction for their families.
From a strictly financial standpoint, the best time to be on the market is starting in February or March, when buying activity is at its peak and many sellers have not yet come on the market. (Keep in mind that many buyers look for six to ten weeks before buying a home, which means the serious looking is actually under way by late January)
Of course, no matter when you choose to list, your home must be salable. In today's fear-based economy, buyers are going to look more critically than ever at a home's location, components, and overall value in relation to the competition.
But if you're looking for that time of year when you have the greatest probability to sell your home for top dollar, it's the spring market. Simple supply and demand says if you list with maximum buyer interest against less competition, you'll get the best price.
