Understanding Price Trends: What are the Best Months for Selling a House in Indiana?
If you are in the market to sell a house, chances are you were told that there’s a ‘sweet spot’ of the year where you can sell for a high price and seal the deal in less time. Well, they are absolutely right. And that time is right now.
May and June are the best months of the year to sell according to Market Watch. This is because sellers get a premium of 7.4% in May and 7.3% in June.
This concurs that spring is traditionally the best time to sell in Indiana, and national data suggests that the dates between May and June saw the most houses bought last year. Median sale prices in late May to early June ranged from $200,000 with an average of 9.2% in seller’s premiums. On average, it will only take 58 days between putting up a “house for sale” sign to it being sold in Indianapolis if you list it within this period.
While that is all well and good, is it enough to just list your house within this ‘sweet spot’? Definitely not.
Pricing is an art form these days. Price it too high out the gate and you’re bound to cut it down, sometimes below the estimated value. Price it too low, and you’ll find yourself regretting selling your house. If you want to maximize your gains in selling this spring, you must understand the price trends to optimize your house’s market valuation. Another thing to consider is the overall condition of your property. The more “move-in ready” your house is the faster it will sell. If you house house needs repairs and updates, it may extend the time it will take to sell.
Supply and Demand
Demand for homes are far outpacing the supply right now and that is to the seller’s advantage. This is partly driven by the positive job outlook and the fact that many millennials are in the market to buy homes for the first time. To get a sense of the market, IBRC reports that 89,000 existing homes were sold in Indiana last year. With the construction of homes at a historic low, this trend in rising prices will unquestionably continue until next year. While this may seem like good news, steep prices – now on a manageable 9.4% value growth – means many mid-income buyers will be driven out of the market.
Interest and mortgage rates
Low interest rates can benefit you too. While rising, the current 4% 30-year fixed mortgage rate is still below average. The steady rise in mortgage rates is fueling demand as buyers know it won’t last long. Freddie Mac’s historical data shows that mortgage rates on average stood above 10% over the past decades and only tapered off to 6-8% in 1992 and 1998. Unlike last year, the current rise in mortgage rates is translating to higher house prices. But experts warn that if this rise continues, it could reach a price equilibrium sometime next year. Pricing equilibrium is defined by FXCM as the point when “supply and demand curves intersect.” And when they do, it tends to slow down sales and drive prices down.
Whether you’re selling because you have to move for a job right now or want to move in to a bigger (or smaller house). Right now is the best month and year to sell. Just don’t forget the other price points.