Incentivizing current owners to sell is key
Homes listed for sale midweek sell for an average of 1.6 days faster than homes listed on weekend
A new report from Redfin shows that homes listed midweek sell for an average of $1,700 more than homes listed on the weekend, based on homes sold above their list price from July 2020 through February 2021. And they sell faster, too.
Putting a home on the market on a Friday or Saturday is risky, since potential buyers may have already filled their weekend with other home tours, said Redfin Chief Economist Daryl Fairweather. That’s especially important during the pandemic, when it’s more likely that buyers and their agents are required to book individual appointments to tour homes, she said.
“And listing on a Sunday or Monday means buyers may lose interest before the following weekend,” Fairweather said. “Because the market is so competitive right now, most homes will receive plenty of attention regardless of when they’re listed, but sellers can still maximize their potential profit simply by listing in the middle of the week – which gives potential buyers a few days to see the home, talk to their agent and set up a showing for Saturday or Sunday.”
Homes that hit the market midweek in Boston sell for an average of $7,100 more than homes listed on the weekend, easily the biggest premium of the 25 metro areas included in Redfin’s analysis. Boston was followed by Newark ($4,500 more), Seattle ($4,400), Oakland ($3,500) and Denver ($3,200).
Data gathered from Redfin showed that listings of homes for sale get 64% more views the day they first hit the market than the day after a price drop. Meaning, if a home listed for sale gets 100 views its first day on the market, it would get 61 views the day after a price drop. Additionally, homes listed for sale midweek sell for an average of 1.6 days faster than homes listed on the weekend.
Even with the market as hot as it is – some homes across the country are getting 20 to 40 offers within 12 to 24 hours of being listed – Fairweather said sellers should be modest with their listing prices in order to maximize the amount of eyes put on the home.
“Sellers shouldn’t overprice their homes, even if most homes in their area are selling for higher than their asking price,” she said. “If the home doesn’t go under contract within a reasonable time and the seller has to drop the price, fewer potential buyers who are searching within the home’s new price range will see it.”
Redfin also looked at specific markets when studying midweek sales. In terms of sale speed, the advantage of listing midweek is biggest in St. Louis, where the typical home listed midweek sells 3.5 days faster than one listed on the weekend. It’s followed by Newark, New Jersey (2.9 days), Grand Rapids, Michigan (2.9), Frederick, Maryland (2.8,) and Boston (2.8).
Speaking of Boston, homes that hit the market in the city midweek sell for an average of $7,100 more than homes listed on the weekend – the biggest premium of the 25 metro areas included in Redfin’s analysis.
The advantage is smallest in Sacramento, California (0.7 days), Chicago (0.8), Phoenix (0.8), Dallas (0.9) and Portland, Oregon (1).
Mortgage Bankers Association Chief Economist Mike Fratantoni told HousingWire in March the demand for homes will continue to be bolstered by an improving job market, favorable demographic trends, and mortgage rates that are still low from a historical perspective. The unemployment rate, which was at 6.2% in February, is expected to drop to 4.7% by the end of the year, with hiring accelerated by a surge of consumer spending as pandemic restrictions are lifted.
By Tim Glaze