Can home sellers still get a nice premium this spring despite COVID-19?

by Candyd Mendoza06 May 2020

Home sellers can typically score a premium of 10% or more during the peak of home-buying season in late spring or early summer, but the US housing market may have yet to feel the full impact of COVID-19, according to ATTOM Data Solutions.

ATTOM's analysis of over 33 million single-family home and condo sales over the past nine years showed that Americans are most likely to buy in June and in May, even when premiums are 9.6% and 8.3% above market value.  

"Timing the housing market is far from an exact science. But home sellers who want to get the highest price should aim to complete their deals during the peak house-hunting season in late spring or early summer, when the most potential buyers are out looking," said Tod Teta, ATTOM Data Solutions chief product officer.

However, Teta expects this year's homebuying season to hit pause due to the ongoing coronavirus pandemic.

"This year could be a striking exception if many potential homebuyers stay home because of coronavirus social distancing or worries about job security," he said. "But sales price data going back almost a decade shows that transactions completed in May, June and July typically net 7% to 10% over market value, which amounts to around $17,000 to $25,000 on the typical home nationwide. That's a nice markup compared to other times of the year."

The months realizing the greatest seller premiums were as follows: June (9.6%); May (8.3%); July (7.3%); April (6.8%); February (6.7%); March (6.4%); August (6%); September (5.2%); January (4.8%); November (4.3%); October (3.8%); and December (3.7%).