- Interest rates, market conditions and location determine what time of year you should put your home up for sale.
- We believe winter is a good time to sell because there’s less competition, among other reasons.
- December is not a good time to sell as most people are on vacation.
Selling a home is a strategic endeavor, and you want all factors to be in your favour.
With demand for properties on the rise in the post-lockdown period, you’re likely to experience interest regardless of which time of year you choose to sell. That said, some seasons are still better than others.
When is the best time to sell? Factors to take into account:
- Interest rates.
- Market conditions.
1. Interest rates
It helps to know whether interest rates are likely to go up or down in future. In South Africa, as of 2022, interest rates are expected to go up as the South African Reserve Bank adjusts for inflation.
So the longer you wait to sell, the higher interest rates will get, making home buyers gradually more reluctant to take the plunge.
2. Market conditions
Market conditions change with the seasons. The housing market is more competitive durinng summer and spring, and less competitive during winter. The former means more buyers to attract while the latter means less sellers to compete with.
Assess the location of your property and determine which seasons make that property more attractive.
Take into account when buyers will be attending house showings, rather than when they’ll be doing the actual buying. Properties in remote areas can shine during the winter months if made to look cozy.
Why we think winter is the best time to sell
Our research shows that winter, contrary to popular belief, is a good time to put a house up for sale.
- Less competitive property market.
- Buyers looking for schools.
- Buyers preparing for the summer months.
Less competitive market
Less people put their properties up for sale during this time of the year, but buying activity doesn’t suffer for it. Estate agencies reported record sales and interest from foreign buyers during winter in 2021.
Buyers looking for schools
Those looking for properties with good schools nearby usually start looking this time of year so they have time to find and purchase a property before the next academic year begins.
Preparing for the summer months
Buyers want to be able to move into a new home before the summer season hits. This is especially the case with foreign buyers, who want their holiday home ready for the holiday season.
The worst time of the year to sell your home?
There’s not necessarily a time of year when you’ll find it impossible to sell your home, but if we were to pick a month it would probably be December. Summer is when most people take their vacations, so they’re less likely to spend that time house hunting.
Tools for home buyers
If you’re looking to use the funds from selling your home to purchase a new one, it helps to know what home loan you would qualify for and what you’re likely to pay.
You can use our Bond Calculator, and take this information into account when ascertaining how much you need to make from your home sale.
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