Skip to main content

Seasonality and the Correlation with Days on Market





Credit for graphic: Chris Butterworth and Simple MLS Charts

I ran across this great graphic that did a great job of telling the story of the seasonality in the Arizona Real Estate market and how it correlates to the days a house is on market before it is sold. There are a couple of things I want to point out before we jump into my thoughts on this. First, please take note that this is looking at the last 3 year’s trend. Second, by way of explanation, the orange downward sloping line is the trend line and the blue line with the dots are the actual data points that represent a recorded closing for each month. The dates are along the bottom and the days on market are noted on the left side of the chart. So with those items established, let’s jump into explaining what we are looking at here.

So as we are looking at the chart we can see a very gradual trend overall towards shorter days on market (orange line), but within that is some very obvious seasonality trends. Look at January closing numbers for each of the years. You can see that January closings are the closings that took the most days on market to accomplish and most of those were initiated in… wait for it… October (THIS MONTH!). So what does that mean to you if you are trying to “time the market” in regards to days on market? It means that if you list your house for sale in October you can expect it to take the most days (as compared to the rest of the year) to actually close and you can expect it to close between December and January.

Looking to get your house sold in the least amount of days? Well then we would tell you based on historical data that you want to sell your house between March and June and it will sell in the shortest amount of days on market.

Do these days on market mean anything more to you? Well historically yes. We have been able to track and see that there is a correlation between the days on market and the sales price as well. The longer a house is on the market the less that it sells for.

So a good agent will tell you that we need to price the house correctly right out of the gate in order to make you the most money - regardless of where you are in the seasonality of the market. A great agent will use great marketing and education to help you maximize your exposure and desirability within the market no matter what time of the year it is. Consult with your agent on when the best time for YOU to sell is based on your needs and goals and what you as the seller and what they as the agent are going to do to maximize all the opportunities in your needed time frame.

Please reach out to us with any questions you may have on this information or discuss your specific real estate questions and needs. We are here to be a resource to you and are never too busy to help or to help your referrals. Please visit us at www.Living48re.com for all of our great resources to help and educate.

Comments

Popular posts from this blog

Take Advantage of Your Home Equity: A Homeowner’s Guide

Homeownership offers many advantages over renting, including a stable living environment, predictable monthly payments, and the freedom to make modifications. Neighborhoods with high rates of homeownership have less crime and more civic engagement. Additionally, studies show that homeowners are happier and healthier than renters, and their children do better in school. 1 But one of the biggest perks of homeownership is the opportunity to build wealth over time. Researchers at the Urban Institute found that homeownership is financially beneficial for most families, 2 and a recent study showed that the median net worth of homeowners can be up to 80 times greater than that of renters in some areas. 3 So how does purchasing a home help you build wealth? And what steps should you take to maximize the potential of your investment? Find out how to harness the power of home equity for a secure financial future. WHAT IS HOME EQUITY? Home equity is the difference between...

Arizona Christmas Traditions

Here in the Evans Home we have a lot of Christmas season traditions. Arizona is definitely not your typical winter wonderland but I, for one, am extremely grateful to not have to shovel snow every morning. (Sorry Katelyn and Garrett, you chose to live in Utah, so that's your own fault). We thought it would be fun to share some of our Christmas traditions with you, and we want to know what your family's traditions are too! Make sure to comment below and let us know!! First, we want to share a few of our more comedic Arizona traditions. If you're not from Arizona, you will definitely find these comedic. If you ARE from Arizona you probably have seen these on every corner or in every house. Because where else are you going to put Santa hats in your front yard? With the average temperature in the valley being around 70 degrees during the day you're more likely to see a "fireplace" on a TV then actually being utilized in a home. If you ask us we ...

Fabulous Property with Great Location in Mesa!

Fabulous Property with Great Location in Mesa! Listing By: Matt King 480-818-3612 matt.king@kw.com Click HERE to view this video on YouTube. This amazing 4 bed, 3 bath home features grassy/gravel front yard, 3 car garage w/door to backyard, and brick veneer accents.  The fantastic interior will conquer you! Great room, plantation shutters in all the right places, family room w/fireplace, and a large bonus room perfect for a play/hobby is just the beginning.  Nice size kitchen includes stainless steel appliances, maple cabinets, Corian countertops, island w/breakfast bar, and track lighting. Spacious master suite has walk-in closet, and an immaculate bath with double sinks & separate tub/shower. Huge backyard offers an extended covered patio with grassy landscape and plenty of room for a pool.  Make sure to contact Matt today to set up a showing! This beautiful property is going to...