The Best Time to Sell a House (Hint: Don't Wait Until Summer!)
by Becca Stewart - October 25th, 2022
About 400,000 service members will receive PCS orders this year. About 65% of those moves will happen between 15 May through 31 August. We will spare you from doing the math: that's about 260,000 service members – plus family members – all trying to move across the country and around the world during the same small window.
Of those 260,000 families, many will be selling a home before their upcoming PCS. But is summer the best time to sell a house? Or should military families consider getting their homes on the market before the weather heats up?
The housing market is changing
If you've bought and sold a home before, you've probably heard the old adage that summer is the best time to sell a house. And while you might find more buyers and get a slightly higher price for your home in June or July, that also leaves very little wiggle room for getting your home sold, moving into a new place, and getting settled before the school year begins.
This summer, it could take even longer to sell a home.
Last year, the housing market was on fire. Low interest rates and low inventory led to bidding wars nationwide. Most sellers were under contract within a week or less. But that's not the case anymore.
Now, with inflation, rising interest rates, and more inventory, the pendulum is swinging back toward the buyer's favor. The average home was on the market for 34 days in September 2022, up from an average of 28 days in September 2021. That change might not feel significant, but home sellers should take note.
Military home sellers should give themselves plenty of time in this housing market. Homes must be in better condition to receive top-dollar compared to a year ago (when homes were under contract within hours, sight-unseen). It will take more time to prepare for the sale, and your home could take several weeks to go under contract.
Here are helpful tips for how to stage your home.
The best time to sell a house for a summer PCS
If you're planning to PCS in the summer, June or July might not be the best time to sell a house. Instead, get ahead of the game and put your home on the market before school lets out.
Listing your home in late spring will give you plenty of time to wait for the right buyer. We all know how stressful that final push before a PCS can be. Waiting until the last minute to find a buyer for your home - or worse, not getting your home sold before the moving trucks arrive - will only increase your PCS anxiety.
By listing early, you have plenty of time to go under contract, complete any necessary repairs, and even re-list your home should the deal fall through.
Secondly, listing your home in late spring means you'll have less competition. Many more homes are on the market during peak home sales season (May through August). You might be competing against other homes within your neighborhood and certainly against many others in your local area. If you list early, there will be fewer homes for buyers to compare yours to – and that might work out in your favor.
Consider your timeline
Start by looking at your PCS timeline. What is your projected RNLTD (Report No Later Than Date) at the new installation? Once you have an estimated date, work backward. How long will it take to travel? How many days for packing and loading? Will you need additional time to get the house ready to list or make necessary repairs?
Then, keep in mind the average days on market and factor that into your timeline. The market will likely change between now and the time your home goes up for sale. Consult with an expert real estate agent who will know exactly what's happening in your local market.
If you wait to list your home, and the process takes longer than expected, you could end up paying on your current house even after moving day. Listing early can save you from having to pay two mortgage or rent payments at a time – something no one wants to do during an already stressful PCS!
What if we go under contract too early?
The earlier you list, the sooner you will be under contract. But that's not always a good thing. If you list too early, the buyers might want to close long before you need to move - and that could mean weeks in temporary lodging and thousands in additional expenses.
However, it's not unusual for buyers to grant a delayed closing or even allow the seller to continue living in the home after closing in some cases. So, if your military RNLTD isn't until later in the summer, it's still possible for you to sell in the spring and continue to live in your home until it's time to PCS.
The timing can be confusing. The first item on your to-do list should be contacting a reliable and experienced real estate agent who can help you make the best decision for your family. Click here to find trusted real estate agents near you, all reviewed by other military families.
Remain flexible
Listing your home in the springtime allows some flexibility for buyers, too. Homebuyers – particularly first time buyers – are struggling to buy real estate right now. Housing prices continue to outpace income increases, making it more challenging to afford homeownership. And rising interest rates are pricing many buyers out of the market altogether.
Once you accept an offer, particularly if the buyers are first-time homebuyers, expect loan processing and closing delays. Mortgage and title companies are still struggling with staffing shortages, meaning you might need to practice some patience.
By listing early, you can account for some of those delays and afford yourself and your buyers more time. You'll also have more time to negotiate the terms of the deal and complete the necessary repairs before closing.
If you wait until summer, and something goes awry with the buyers' financing or contract negotiations, you could find the deal canceled altogether. That will mean putting the house back on the market and starting the process over again, just as you're loading up the moving truck.
By the time you finally close, you could already be living in your new location, paying a mortgage for a home you no longer inhabit.
A word about interest rates
The pandemic wasn't good for much, but it was great for mortgage rates. The Federal Reserve slashed interest rates in 2020, leading to historic low mortgage rates.
Unfortunately, all good things must come to an end. Economic instability caused the Fed to raise interest rates to combat inflation. In just six months, the Fed raised interest rates more than 2% - the fastest increase in American history.
When federal interest rates increase, so too do mortgage rates. That means monthly payments on those mortgages have also increased - sometimes by hundreds of dollars a month. Add to that housing prices that continue to rise, and homeownership is becoming increasingly difficult for many Americans.
Buyers aren't lining up like they were in 2021. It's probably going to take a little longer to find that ideal buyer, so don't wait to list your home.
Should we buy again?
Even though interest rates are rising, homeownership is still a great investment for military families. Yes, interest rates are up. But home prices continue to increase year over year in most markets, So, you can still expect to gain equity over the life of your loan.
And remember, once interest rates fall (which will happen, eventually), you can always refinance and lower your monthly payment.
If you're unsure whether you can afford to buy in this current market, or you have questions about different loan programs, contact a mortgage lender.
The bottom line? Don't wait to get your home on the market. More time means less stress. And that's something we can all get behind this PCS season!
Becca Stewart is an Air Force Spouse, mother of two, freelance writer, and sufferer of Wanderlust. Originally from Colorado, she enjoys anything outdoors, especially if there’s snow involved. She is a travel fanatic, always looking for her next great adventure. As a full-time writer, Becca works closely with several nonprofit organizations and is a passionate advocate for human rights and military families. Learn more at writebecca.com.
