Selling a home can be a daunting task, and timing is everything when it comes to getting the best price for your property. In Southern California, where the housing market is always in flux, timing can affect choosing the right time to put your home on the market. In this blog, we'll explore what the industry experts say is best time to sell your home in Southern California and what factors to consider.

The first factor to consider is the overall state of the housing market. What is the current state of the housing market in Southern California? It’s all about perspective.

Despite slight fluctuations, the median price of single-family homes has remained relatively stable year over year. According to data from the California Association of Realtors (CAR), the median single-family home price was $777,500 in November 2022, only slightly lower than the $782,480 price in November 2021.
The California real estate market is thriving in some areas experiencing more growth than others. For instance, areas like Fresno, Los Angeles, and Orange County saw year-over-year increases in home prices, up is better than down. And in the wine country regions of Napa and Sonoma, there were significant increases in home prices, highlighting the desirability and growth of these areas.
It's important to note that homes are still selling, and although the process may take longer, this allows for more time to find the right buyer and reduce bidding wars driving costs well beyond reasonability. According to a report by CAR, in October 2021, the average time a home spent on the market before selling was 11 days. However, over the past year, this number has increased to 23 days on the market. This means that buyers have more opportunities to view and consider properties, and sellers have more time to showcase their homes and make necessary improvements. Ultimately, a longer time on the market can lead to a more successful and satisfying transaction for both parties involved.

Historically, the market tends to be more active in the spring and summer months, when the weather is warm and people are more likely to go house hunting. Families with children often prefer to move during the summer when school is out. Therefore, if you're looking to sell your home in Southern California, the best time to do so is between March and July. During this time, you'll likely see an increase in potential buyers and a higher demand for properties.

Another factor to consider is the current interest rates. Before this article was posted, as of February 20, 2023, current rates in California are 6.88% for a 30-year fixed and 6.20% for a 15-year fixed. Let’s take that into perspective. Just a few months ago, November 2022, interest rates were approaching 7%. And in October 1981, interest rates were 18.53%. Interest rates have “bottomed out” to all time lows only during major catastrophes such as the infamous housing market crash and COVID. Therefore, 6.88% is a historically average interest rate. Take a look at this Fannie Mae graph over the years courtesy of Economic Data from St. Louis Feds. It’s all about perspective.

However, when interest rates are low, it's logical that more people are likely to be in the market for a new home, which can increase demand and drive up prices. In contrast, high-interest rates can make it more difficult for buyers to obtain financing and may decrease demand. Therefore, it's a good idea to keep an eye on interest rates and consider selling your home when rates are low.

When considering the sale of your dwelling in the breathtaking Southern California region, it is wise to take the climatic conditions into account. The scorching summer months may discourage potential homebuyers from embarking on house-hunting expeditions, preferring instead to seek respite in temperature-controlled sanctuaries. However, on the contrary, it has been observed that the absence of air conditioning in their current residence has led to an increase in viewings to seek relief from the blistering heat. As for the moderate seasons of autumn and winter, they present a propitious opportunity to showcase and successfully sell your property, as the weather is calmer, and competition from fellow sellers may be relatively low. Nevertheless, it is vital to keep in mind that the holiday season may engender a sluggish phase in the housing market, as the majority of individuals are preoccupied with festivities and other celebratory activities.

When contemplating the optimal period to sell your residence in the ravishing Southern California region, the ideal time is seemingly opportune at any point. It is contingent on a medley of factors, which includes the state of the housing market, prevailing interest rates, and the time of season. Nonetheless, based on historical industry sales, the spring and summer seasons exhibit the highest levels of activity, which may consequently result in a superior selling price. Ultimately, the timing of your home sale will depend on your individual circumstances, which necessitates consulting a well-informed real estate agent, staging your home expertly, and conducting your own research to arrive at an informed decision.

The Art of Timing: How to Maximize Profits When Selling Your Home