Sellers that have the luxury to wait for the best time to sell their home, often ask me when that is.
The Minnesota real estate market is predictable year after year, but it can be impacted by irregularities such as weather, a market crash, higher than normal interest rates, or a pandemic.
I used data from the Multiple Listing Service, for Chisago County to answer this question. I compared the number of new listings in each month, the percentage of those that sold, the average marketing time, and the median sale price, in the County, over several years.
It is important to keep in mind that homes sell all year, but at a different pace. In the fall and winter, we typically see change of life situations, such as marriage, divorce, employment changes, death, health concerns, and retirement. Families with students typically like to be settled before school starts, snowbirds are gone during the winter, and many people do not want to move during the winter.
October starts the annual slowdown which runs through February for new listings and home sales. The slowest month for new listings in Chisago County is December, New listings in December and January had the longest marketing time, and homes sold in November & December had the lowest median price of the year.
June had the highest number of new listings, but many wound up being cancelled or expired. Most sellers do not realize that about 25% of new listings do not sell the first time they are listed. This could have to do with price, condition, or timing. It is common for listings that do not sell to be cancelled and relisted at a lower price, and then they sell.
May had the second highest number of new listings and the highest number of home sales. The homes that were sold in May also had the highest median sale price.
April, May, and June typically have the highest number of new listings, and the highest number of sales. March and April typically have the lowest marketing time, because buyers start looking in March as the snow melts, but sellers prefer to list their homes in June when they look their best, so inventory is low.
The problem with waiting until June to list your home is once school gets out and the weather is nice, people get busy with graduations, confirmations, weddings, holidays, and vacations, so showings and sales begin to slow down.
There are some exceptions like lake homes, acreage, and one level living. Lake homes do well in July, August, and September, as they are discovered by vacationers on holidays and weekends. Properties with acreage show best when there is easy access to the house, especially if the driveway is not paved. One level living does well from March to October. Seniors like to avoid looking in the snow and ice, and many are gone during the winter months.
Every property is different, and an experienced agent can help you determine the best time for you to sell your home.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Realty, who lives and offices in the Chisago Lakes Area. Submit your questions to ckempenich@cbburnet.com. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.