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California’s ever-changing real estate market can be tough to navigate, especially for those looking to sell a home in the current economic climate.
For state residents looking to downsize or move out of the state altogether, this is when experts say you should sell your home.
“In California, seasonality means more buyer demand in cold months, which pushes the best week to sell slightly earlier,” Hannah Jones, an economic data analyst at Realtor.com, said. “However, for most California metros included, the national best week is within the top 10 weeks of the year to sell.”
This means the best time to sell a home in the Golden State would be around January and March, especially for homes in Los Angeles, San Francisco, or San Diego.
In comparison to the rest of the country, the best time to sell a home is typically during the spring, specifically in mid-April, according to Jones.
While the ideal time to sell a home in California has passed, that doesn’t mean people can’t put a home on the market. Jones noted that people might hold off on selling their homes for many reasons.
“It is nearly impossible to perfectly ‘time the market,’ as every season has both upsides and downsides for sellers and uncontrollable external factors can have a big impact,” Jones said.
“Sellers who chose to sell now may have to buy a new home at a higher mortgage rate than their current rate, but also stand to cash in on sizable home equity.”
For homeowners who chose to hold off on placing their home on the market, Jones said the next “best” time to sell a home depends on the seller’s preference.
“Potential sellers should evaluate their local housing market and decide if conditions are conducive for a successful sale; however, that may be defined to them,” Jones said. “For example, if a seller cares primarily about listing for a high price, the summer may be a great time to sell as prices peak in the summertime, though sellers tend to be more active in the summer, meaning more competition. If maximum buyer demand is the goal, a slightly earlier sale may mean more listing views, though listing prices tend to be lower.”
Regardless of when a seller enters the market, selling a home can be an extremely stressful process. Jones suggests that sellers should set realistic expectations when entering the market to attract potential buyers.
Sellers should also know that today’s real estate market is more buyer-friendly than a year ago.
Due to high home prices and mortgage rates, many buyers have been priced out of the real estate market, making more homes available for longer.
“In the 10 largest California metros, prices increased 2.2% year-over-year in March, lagging the typical increase seen nationally, and price reductions were up 81.7%. There were about 30% more active listings in these metros than last year, and homes were spending 69% more time on the market,” Jones said.
“Buyers have more leverage than last year, as homes sit longer and prices level out. However, prices were an average 35.4% higher in these metros in March 2023 relative to March 2019, meaning that many buyers have been priced out, unable to participate until prices and/or mortgage rates come down.”
Jones also mentioned that those who enter the market as sellers are also looking to buy another home, whether in the Golden State or elsewhere.
For Californians looking for a home, a March study from Go Banking Rates found that the following California cities have the cheapest home price averages:
- Oildale (Kern County): Average home price: $248,001
- Porterville (Tulare County): Average home price: $278,057
- Delano (Kern County): Average home price: $278,057
- Tulare (Tulare County): Average home price: $310,699
- Calexico (Imperial County): Average home price: $315,277
Prospective homebuyers who are flexible on location but have a fixed budget can look for homes in states like West Virginia, Arkansas, and Mississippi, which offer some of the nation’s lowest real estate costs.
FAQs
Best Time to Sell Your House for a Higher Price
April, June, and July are the best months to sell your house in California. The median sale price of houses in June 2023, was $796,400, which is expected to grow more in 2024. However, cities like Arcadia and San Mateo follow an upward trend throughout the year.
What is the best month to sell a house? ›
Here's how each month of the year ranked for the best time to sell a house. The highest-earning months are, in ranking order, May, June, April and March. Just over 18 million purchase transactions took place during this period, according to ATTOM.
Are home prices in California expected to drop? ›
The revised California median home price forecast is for a rise 0f 6.2% to $860,300 in 2024, a -1.5% drop this year to $810,000 from $822,300 in 2022.
Should I sell my house now before a recession? ›
Should I sell my house now, before there's a recession? Recessions mean belt tightening and potential layoffs. If your area is hard-hit by job losses, the number of qualified buyers will be severely limited — if you're concerned, it might be best to sell before that (potentially) happens.
Is it a sellers market in California right now? ›
What is the housing market like right now? In April 2024, home prices in California were up 11.7% compared to last year, selling for a median price. On average, the number of homes sold was up 13.7% year over year and there were 24,763 homes sold in April this year, up 21,773 homes sold in April last year.
What are the hardest months to sell a house? ›
The best months to sell a house are during the spring season, from April to October. Because the demand outweighs supply, housing prices increase, and homes sell faster. Meanwhile, the worst months to sell a house are November through March or during the winter, when potential buyers are preoccupied with holiday plans.
What is the slowest month for real estate sales? ›
Typically, winter time is the slowest of the year to sell a property, specifically November, December, and January. However, there are some exceptions because there are several conditions that affect the housing market.
Should I sell my house now or wait until 2025? ›
Strong Seller's Market: Experts predict a continued seller's market in early 2024 but with potential shifts later in the year. Selling now allows you to capitalize on high demand and potentially fetch a premium price. Limited Inventory: The housing market continues to face inventory shortages, which favors sellers.
Is 2024 a good year to sell a house? ›
The influential Mortgage Bankers Association is forecasting that mortgage rates will hit 6.1% by the end of 2024. This creates a more favorable climate for real estate transactions. Prospective rate drops encourage more buyer activity in the market, getting buyers off the fence and actively planning a purchase.
What is the real estate forecast for 2024 in California? ›
Sales will have a soft growth in Q1 2024, but momentum should pick up later this year as rates decline further. California home sales will bounce back with a double-digits gain in 2024 after declining more than 20% in 2023.
For example, Bankrate's mortgage calculator shows that for a median-priced $843,340 California home, with a 20 percent down payment on a 30-year loan at 7 percent interest, buyers can expect to pay $4,488 in principal and interest each month.
What are the interest rates for houses in California 2024? ›
California Mortgage and Refinance Rates
| Rate | APR | as of May 31, 2024 |
|---|
| 6.124% 30 year fixed | 6.344% Points: 1.886 | $2,916 Upfront costs: $ 11,048 8 year cost: $233,017 |
| 6.249% 5/6 ARM | 7.213% Points: 1.832 | $2,955 Upfront costs: $ 10,789 8 year cost: $237,562 |
3 more rowsEconomists predict another year of slow growth around the world in 2024. While the risk of a global recession is lower in the year ahead, two G7 economies dipped into recession at the end of 2023.
Is it better to buy or sell during a recession? ›
That said, timing a recession is difficult to do, and selling into a falling market may be a bad choice. Most experts agree that one should stay the course and maintain a long-term outlook even in the face of a recession, and use it as an opportunity to buy stocks “on sale.”
Is now a good time to sell a house in California? ›
This means the best time to sell a home in the Golden State would be around January and March, especially for homes in Los Angeles, San Francisco, or San Diego. In comparison to the rest of the country, the best time to sell a home is typically during the spring, specifically in mid-April, according to Jones.
What month are houses cheapest in California? ›
In general, home prices go lower during the late fall and winter, when most people are focusing on holidays and less people are home-shopping.
Is it good to buy a home in California right now? ›
California Housing Market Conditions
The current real estate market conditions in California are becoming favorable for home buyers. Here's how: Lower Mortgage Rates: The interest rates for home loans have decreased to 7.01%, marking a decline from approximately 8% in the preceding year of 2023.
Why wait 2 years to sell a house? ›
It's all about capital gains taxes. Owning and living in a home for two full years can qualify you for the IRS's Principal Residence Exclusion. This allows you to deduct up to $250,000 in sale proceeds if you're a single filer, and up to $500,000 if you are married and filing jointly.
What time of year are house prices highest? ›
Generally speaking, late spring and summer are the peak real estate season, when there's the most inventory to choose from — but also the most competition, and the highest prices. If affordability is a concern, you're likely to score a better deal during the winter months.
