April is often considered the best month to list your Bay Area home for sale due to a number of factors that make it a prime time for buyers and sellers alike. This is true all across the United States, and Silicon Valley real estate is no exception in this regard.
One of the main reasons that April is considered the best month to list your Bay Area home is that it is the start of the spring buying season. According to the National Association of Realtors, the spring buying season typically runs from April to June and is the busiest time of year for the housing market; the same goes for Bay Area real estate. It is commonly believed this is because many buyers are eager to move before the start of the summer and after the end of the school year.
Many people believe that many sellers choose to list in April because this is when buyer demand really picks up. However, I believe that a lot of it has to do with the fact that sellers time their sale when their kids are out of school for the year, or who are going off to college out of the area, cutting a strong tie to the home.
According to Zillow, the number of homes listed for sale in April is typically higher than any other month of the year. This means that there is more fresh inventory available for buyers to choose from, and greater choice brings out more buyers still, increasing competition. It can be thought of as a virtuous cycle resulting in an ebullient spring real estate market in the Bay Area and nationwide.
In addition to these factors, several studies have shown that homes listed in April tend to sell faster and for more money than those listed at other times of the year. That statistic alone is one that would lead many to believe that April is in fact hte best month to list your Bay Area home for sale. However, a study by Redfin found that homes listed in April also sold 6 days faster and for 1.2% more money than those listed in other months. Similarly, a study by Zillow found that homes listed in April sold an average of 9 days faster and for 1.9% more money than those listed in other months.
It should be noted that while the sale prices are evidently higher in the spring market, this is not universally true. Likewise, it should be noted that the type of homes that sell in April tend to be larger and more expensive than at other times of the year (which supports my notion these sellers tend to be older and wealthier with larger homes than average). While prices in April may be higher, the price-per-square-foot is closer to the median trend than the top-dollar sale price would suggest.
I should mention that it’s impossible to time the market, and that while statistically it may appear that April is in fact the best month to list your Bay Area home for sale, you can get an amazing price and fantastic terms any time of the year.