Listing in the Winter = Selling For More!

Stay ahead of an important MLS change!

Last winter Anthony Lamacchia wrote a Column in the Boston Globe along with a noteworthy blog illustrating how Home Sellers who List in the Winter Get a Higher Price. The blog debunks the common misconception that spring is the best time of year for home sellers to sell. The fact is there are tremendous home selling opportunities throughout the year, in particular in the winter homes typically sell the fastest and for the most money.

Why this is the case? The most significant contributor to this outcome is that the available inventory levels in the winter are typically at their lowest for the year, especially in January. With scarcity in the market, when a home gets listed there is a natural increase in demand as there is very little, if any, competition. The forces of supply and demand come into play as the driving force behind homes going under agreement quickly and often over the asking price as a result of a Bidding War.

Another key factor that will rapidly impact housing inventory is a long awaited and welcomed change to MLS Guidelines. For at least the last five years when a property that was listed for sale comes off the market for any reason the property would have to stay off the market for at least 90 days before it could return with a clear market history. The recent MLS change reduces the number of days the property needs to remain off the market to only 60 days. This will have a considerable impact allowing sellers to relist their homes with a fresh start date 30 days sooner than before.

In prior years the number of homes for sale typically began to rise in mid to late February. The 90 day wait period is closely correlated with sellers who took their home off for the holiday season in the November timeframe and relisted 90 days later in February. This year the influx of homes getting relisted will also be faster. The selection of homes competing in the market sooner will result in an increase in supply which will reduce the demand per property.

This chart illustrates total homes for sale (Inventory) over 52 weeks in 2013, 2014 compared to 2015:

For the rest of the story, visit our website here!