Feeling Merry: Why Sellers Love the Month of May

The best time to sell a home is in the first half of the year, declares a high-profile real estate data firm. The ATTOM firm just came out with its annual take on the best days of the year to sell a home.

To ensure accuracy, ATTOM reviewed sellers’ profits from tens of millions of house and condo sales, dating back from 2011. The upshot? In May, sellers are most likely to get more than their asking price. In case you’re curious, the study did pinpoint the very best day to sell. It’s May 27.

That’s pretty exciting — but it’s also a generalization. Let’s take a closer look.

Survey Says… In Spring, Sellers Get More Profits.

More deeds change hands, and for more money on average, when late spring rolls around. We know this as the National Association of REALTORS® has tracked sales and published the stats for 25 years. Notably, home sales surge in February and March. As spring bursts through the winter lull, listing prices tend to rise.

ATTOM’s 2024 analysis offers dramatic indicators. It shows home sellers getting a 13% premium in May. May 27, ATTOM claims, is “the best day to sell a home, with a seller premium of 16.2%.” The next best day, according to ATTOM, is May 25.

Selling typically continues at a brisk pace through the summer months: June, July, and August. The 2-million-plus deed conveyances that happen in these four months add up to 40% of the typical year’s deed transfers.

In most areas, May and June are the busiest two months for recorders of deeds. June typically wins for the most homes sold overall.

This matters not just to buyers and sellers, but also to deed recorders’ offices. A recorder of deeds brings a county hundreds of thousands of dollars in recording fees and revenue. A successful year at the county deed recorder’s office is good news for your county’s local and state services.

The Seasonal Cycle Is Well Known—But What’s the Benefit in Knowing About It?

Those who are able to plan in advance might pick spring or summer months to sell their homes, in order to benefit from a very real seasonal price lift. They can also take note of the seasonal stats to predict how quickly a home will sell.

Buyers, too, can use this information to their advantage. Statistically, first-time buyers and renters flock to the spring and summer market the most. And of course, many parents prefer summertime moves —  so they don’t interrupt their children’s school year. Even among buyers who don’t have children, there’s a preference for spring and summer moves. 

By early September, home shopping may cool off. Some people take their summer breaks at this time. In some cities and towns, real estate experiences an August pause. In these areas, locals list before and after August.

If you can’t time your sale around market cycles, never fear. Summer is certainly not the end of the real estate year! In some markets, more deeds are transferred in the autumn months than in any other time. Late-year sellers have advantages, too:

  • Sellers can connect with late-year buyers who want to close in time for the holidays.
  • And with fewer homes on the market, late-year buyers are motivated to take what’s listed.  

Note: The spring and summer surge isn’t as pronounced outside of the Midwest and Northeast United States. Sellers in other areas might not benefit too much from following seasonal cycles. Also, if a home is for sale in a desirable metro area, a late-year listing could impact the sale less than it would in a smaller town.  

Yes, sellers who miss the local “hot” season could face a price dip in the fall, as the stats show. On the other hand, late-year sellers have more time to keep building equity.

Overall, real estate tends to appreciate with time. Yes, we’ve had a lull recently — but the general direction for home values is “up and to the right.” See for yourself, with a quick look at the FRED Economic Data chart.

If You Miss the Season, Late 2024 Could Still Be Hot—If We Get Interest Rate Cuts.

Some people who would otherwise be buying are hanging back, awaiting news of a rate cut from the Federal Reserve. Maybe, as a seller, you’re buying another home yourself. If so, you know.

What’s up with that rate cut, then? Weren’t we all told there would be lower rates in the second half of 2024? We were, and those cuts could be just around the corner. If they materialize, lending will get cheaper and more people will be eligible for mortgages. And that’s great for buyers and sellers alike.

But until Fed Chair Jerome Powell says the word, we can’t be sure these rate cuts will happen.

Meanwhile, first-timers who could buy but choose to wait will miss out on equity growth. Waiting for lower rates means waiting until other sidelined buyers rush in to grab better rates, too. Could such a late-year buying rush be in the cards for 2024? No one can say for certain.

In any case, stats coming out of the National Association of REALTORS® (NAR) look good for 2024 sellers. NAR data shows a bustling real estate season so far this year. As we’ve recently noted, the 2024 mortgage applicants are returning, after the stalled market of 2023. And this rebound comes despite a lack of the rate cuts buyers yearn for.

So, 2024 home sellers are already reaping strong profits — netting some 6% higher profits overall than last spring’s sellers were getting. Quite a few are getting cash offers, as so many buyers are also sellers, and they have built-up equity to spend.

Our Takeaway? Sell Your Home on Your Timeline, Not the Market’s.

Buyers can benefit from knowing about seasonal competition — and from also knowing where the surge is less pronounced. Variations happen across markets. And specific markets can be hard to predict. So, it’s an excellent idea to talk with a few good local agents. Ask the agents for a current view of your market. Then plan out how to get the best results from your sale.

Best wishes, hopeful seller! It’s time to reap the rewards of your equity-building and the good care you’ve taken to maintain your home. A well-kept home in a strong market, fairly priced, sells in any season. 

Supporting References

Megan Hunt on behalf of ATTOM Data Solutions™ via ATTOMdata.com: The Best Time to Sell a Home Is in the First Half of the Year (May 1, 2024).  

Mike Simonsen of Altos Research in HousingWire, via HousingWire.comSellers Are Coming Back to the Housing Market; Can Buyers Keep Up? (from HW Media, LLC; Feb. 12, 2024).

Deeds.com: Time for a Move? Sellers Are Perking Up (Mar. 27, 2024).

Alexander County [North Carolina] Register of Deeds: 2023 Year in Review (Jan. 25, 2024).

Nadia Evangelou for the National Association of REALTORS®: Seasonality in the Housing Market (Jan. 2, 2019).  

And as linked.

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Photo credits: David McElwee and Kostina, via Pexels/Canva.