Sellers in Dallas’ housing market would be wise to wait another two-and-a-half months to list their properties, according to an industry report.
“A new Zillow analysis of 2023 sales found that homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home,” Zillow data shows. “The best time to list consistently had been early May in the years leading up to the pandemic. The shift to June suggests mortgage rates are strongly influencing demand on top of the usual seasonality that brings buyers to the market in the spring.”
But in Dallas, the first half of June is the ideal time to list properties for sale, with a 2.5% increase in sale price — or $9,200 more.
“The 2.3% sale price premium registered last June followed the first spring in more than 15 years with mortgage rates over 6% on a 30-year fixed-rate loan,” according to Zillow. “The high rates put home buyers on the back foot, and as rates continued upward through May, they were still reassessing and less likely to bid boldly. In June, however, rates pulled back a little from 6.79% to 6.67%, which likely presented an opportunity for determined buyers heading into summer.”
The home-shopping season this summer is expected to follow a similar trend in 2023, with the possibility of a second wave if the Fed lowers interest rates mid-year or later.
“It is almost certain the Federal Reserve will push back any interest-rate cuts to mid-2024 at the earliest,” the report shows. “If mortgage rates follow, that could bring another surge of buyers later this year.”
Nationally, sellers in 2022 saw the highest sale premium when they listed their properties in late March, just before rates zoomed past 5% and continued to climb.
Zillow researchers have found the best time to list varies. For example, in 30 of the top 35 largest metro areas, listings brought the highest sale prices between May and early July last year. In San Jose, California, during the first half of June, homes sold for 5.5% more — an $88,000 increase on a typical property. By comparison, homes in San Antonio sold for 1.9% more over the same period.
