Should I list My House for Sale During the Winter?

The Case for Listing Your House in the winter

I am writing this as I am headed home from Los Angeles, where I spent a week in some of the most beautiful January weather they have seen there in a long time.  As I took walks in some of the neighborhoods, the air was fragrant, with flowers like roses, snapdragons, orange trees and magnolias in bloom, not to mention the rosemary that homeowners use for year round shrubbery.

As I am flying home I am informed that Providence has received 6 inches of snow after seeing temperatures this week in the single digits. With so striking a difference, I began to think of some clients who are trying to decide whether or not to list their house on the market now or wait for spring when at least our daffodils and tulips are up. I can see their point.  Things just look great in spring.

Chris and I however are big proponents of listing a  house during the winter.  While not true in every case, here are some compelling reasons to do so which we will outline below.

The biggest driving factor in the housing market is supply and demand, which ultimately determines PRICE.  Plain and simple, in the winter, there are just fewer houses with which to compete. With less competition, the seller will get a better price for their house.

Sometimes your house may have a deficiency, such as a non-existent yard for example.  Buyers will be less inclined to notice at this time of year.  Conversely, if the yard is THE selling point of the house, then the seller could consider waiting; however, the yard would have to be spectacular for it to have that much influence on a buyer's decision. The bottom line, for the vast majority of properties: You can't catch a fish if your bait is not in the water.

The buyers that shop during the winter, who dig out, get in the car, and run around in the cold to go to open houses, are MOTIVATED and SERIOUS buyers.  So the quality of the buyer you have at this time of year is better.

In addition, there are some specific intricacies to this 2009 winter market that make a case for a winter listing.  First, interest rates in some cases are in the low 5’s and have even dipped into the high 4’s on occasion.  These are historical lows for interest rates and mortgage applications for the purchase of homes (not just refinancing) is up. 

Seasonal inflation also plays a role in the rise and fall of interest rates.  Typically and especially in the Northeast, workers, painters or construction workers for example) take money out of the economy, unemployment claims rise, and economic activity is down.  By spring, these workers reenter the workplace, spend, and boost the economy and interest rates rise (we are talking minimally here, but enough to cause an up tick in interest rates in spring).

Importantly, this market with our recession and high unemployment in Rhode Island is still a declining market.  In a declining market, as opposed to an accelerating market, time is not your friend.  The longer the property stays on the market, the less a seller will get.  In fact, every day that goes by in this type of market, the property loses a little bit of value. 

Every seller should consider his or her individual circumstances and motivations for selling at any time of the year. Winter does present a great opportunity to connect with the serious buyer, have less competition for your property (better sales price for the seller) and have buyer take advantage of favorable interest rates.  The head of our company, Sally Lapides actually listed and sold her own home in a January time period and had it under agreement in before the end of February.

One last consideration is what other properties and how many are on the market at the time you are considering listing.  Chris and I keep a close watch on the market, and will recommend listing time to coincide with a gap in the market.  Maybe there are no other houses similar to yours on the market now, or maybe there are too many and you should wait it out. Knowing when to launch your property is determined by all of these factors and every property is different.

But please, don’t forget about winter as a great listing time.  Granted, we don’t look like Southern California in January, but we in Rhode Island have our own special seasonal charm.  We have to wait for at least February until we see our first crocus though……

Warm Winter Regards,

C.C. and Chris Wall

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