Selling your house isn’t an easy undertaking. You have to pick the right real estate agent, make sure it’s in ideal condition, and find an asking price that the market can bear.
As one of the premier companies that buy houses in Minnesota, we want to help you understand some important details sellers tend to miss.
Listing your home during the right time of year has become one of the most overlooked variables homeowners consider to make sure their home sells.
When selling your home in Minnesota, timing plays a key role in determining how long your home stays on the market and how much money you pocket.
Doing effective market research for your area can make a difference of over $10,000 after closing costs on the final sale price of your home.
The statistics show that June takes the cake for the best month overall to list your home. But there’s a lot of information to parse through, so we’ll break everything down in further detail for you below.
Key data points we’re taking into consideration are sold price, closed sales, days on the market, total listings, and inventory.
To save you headaches and heartaches, we’ll also share with you the worst times of year to put your house on the market.
Let’s get started.
House Market Overview in Minnesota
The real estate market in Minnesota has been a booming seller’s market in 2021 as compared to 2020. Taking a look at the Twin Cities, demand has steadily increased for apartments and single-family rentals in the metro area.
A 20.1% decrease in local market inventory vs. last year has given sellers the freedom to command higher list prices for their properties.
Reduced COVID-19 restrictions have improved the local economy, driving rent prices up. The national median rent price has increased by 11.4% to date.
Here are some numbers to put the recent Twin Cities market changes into perspective:
- Median home sales price – $350,000 (11.1% increase from 2020)
- Days on market – 22 (43.6% decrease)
- Closed sales – 43,116 (8.3% increase)
If you’re looking for someone to buy your house in Minneapolis, it’s a great time to pull the trigger.
Taking a look at the entire state paints a similar picture. The data reveals a considerable increase in closed sales and median sales prices. It’s worth noting the increase in the days on market.
Higher prices force buyers to make more difficult considerations and lead to longer negotiation periods.
Here’s an overview of some key performance indicators for the state:
- Median home sales price – $305,000 (13.0% increase from 2020)
- Days on market – 33 (34% increase)
- Closed sales – 50,970 (8.1% increase)
Bear in mind that as we move into fall, market activity tends to drop off. While you might not generate as much initial interest in your home, the level of competition will be lower. Use this to your advantage when determining your home price.
Best Time of the Year to Sell Your House in Minnesota
When it comes to selling your house in Minnesota, late spring and early summer are the best times of year to sell your home. Listing your home sometime during May through August can help you walk away with the most money in the shortest time.
As compared to other Midwestern states, Minnesota has a more narrow time frame for showing properties in ideal weather. Bright summer days have the benefit of better lighting for staging, photography, and property walkthroughs.
Homebuyers with children often take the school year into account before making a move. If you live in a desirable school district, this can drive even more traffic your way.
It’s no secret that Minnesota has some of the coldest winters in the United States. Heavy snowfall restricts travel and slows the real estate market in general.
Best Month of the Year to Sell Your House in Minnesota
An analysis of the Minnesota housing market over the last five years reveals June is the best month to sell your home.
Prices hit a five-year high this June with a median sales price of $329,900. It seems that the warm weather presents the Land of 10,000 Lakes in its best light.
Factors influencing the hot market in June include the end of the school year and an increase in summer vacations. An increase in tourism to desirable locations increases the likelihood families will eventually relocate and/or purchase a summer home.
Low interest rates and low inventory helped make June 2021 a record-breaking month for home sale prices.
Let’s take a quick look at some revealing statistics about what makes June an ideal time to sell your home:
- Closed sales increased 19.9% as compared to last year
- Median sales prices increased by 14.8%
- Inventory dropped by 35.5%
Seasonality plays a bigger role in Minnesota home value than in states with moderate weather conditions.
While taking a look at market data as a whole can help you make an informed decision, it’s best to hone in on your neighborhood’s performance.
Understanding how to price your home can help you receive a cash offer. Accepting a cash offer on your house saves you time and money since you don’t have to worry about an agent.
Worst Time of the Year to Sell Your House in Minnesota
As you might expect, houses don’t fly off the market in Minnesota during the dead of winter. If you’re looking to sell your house in five days, December and January aren’t your best bet.
You’ll have fewer buyers looking at your home during these months than any other time of year.
Sellers report lower premiums during this time of year as compared to the summer months.
The holiday season fills up buyers’ schedules and hits their wallets hard. What’s more, strong selling points of your home like swimming pools and decks don’t show well when they’re covered under a few feet of snow.
Even if you’re a fan of cold weather, take how it affects your home’s curb appeal into consideration. A potential buyer might have nightmares considering the difficulty of finding a street parking space or the costs of upkeep.
Buyers also tend to have the perception that sellers trying to move during the winter are acting out of desperation. As a result, they often expect lower prices when it comes to the negotiating table.
Worst Month of the Year to Sell Your House in Minnesota
Though it’s a month of festive cheer, December has the dubious distinction of being the worst month to sell your house in Minnesota.
Take a quick look at how the Twin Cities market performed last December, and you’ll see clear disadvantages to selling during this month:
- Median home sales price – $307,000
- Closed Sales – 5,179
- Days on Market – 39
While December is the worst month to sell your home, we’d like to emphasize that it isn’t impossible. Low interest rates and an improved economy meant that the market performed noticeably better in December 2020 than it did in 2019.
Fewer buyers mean less competition.
If a buyer takes the time to check out your house during the holidays, there’s a higher probability that they’re serious about making an offer.
Median Sale-to-List Ratio in Minnesota by Month
If you’re considering selling your home soon, you’ll love to learn that the sale-to-list ratio in Minnesota has been at 100% or higher since this February.
Here’s a complete breakdown of the numbers for 2021 so far:
- January – 99.7%
- February – 100%
- March – 101.4%
- April – 102.5%
- May – 103.1%
- June – 103.4%
- July – 103%
- August – 102.1%
- September – 101.4%
As you can see, the numbers fall right in line with the hypothesis that the early summer months net you the most value.
Why is Early Summer the Best Time of the Year to Sell a House in Minnesota
The numbers don’t lie. Sellers get the best prices for their homes during periods of blue skies and pleasant sunshine.
Beyond the statistical evidence, other factors give the competitive edge to selling your home during summer.
Parents aren’t worried about school. No one wants to break the news to their kids that they’ll have to move in the middle of the academic year.
There’s a higher inventory. More buyers walking through your home will make it more appealing. It’s much better to see a constant traffic flow through an open house because it creates more demand.
Summer days are longer. More daylight means you have a longer window where buyers will be comfortable viewing your property. It also looks best for lighting purposes.
It’s easier to find another home than in other seasons. Once you sell your home, you’ll have to have a new property locked down. The higher inventory makes finding your new home a breeze.
There are many reasons to relocate to Minnesota. From beautiful lakes to friendly people to a robust economy, Minnesota has something for everyone.
The market has been climbing at an impressive rate since the lull in 2020 caused in part by the COVID-19 pandemic. It’s still a great time to sell your home if you’re looking to upgrade or move away.
We hope you can see how choosing the right time of year down to the month plays a critical role in your home selling process. If you don’t take this into account, you could end up leaving money on the table.
The proper amount of research empowers you to make an informed decision. We want you to sell your house successfully in the shortest time for the best price.