The best time to sell your house

Spring is the hottest season for real estate. The real estate market peaks in April and May and stays strong in June and July. It's a good season for families to move, between school terms and while the weather is warm. People have just received their tax refunds, which they can use to help finance a down payment. And the nice weather and beautiful flowers in spring and early summer make it a great time to show your home.

In fact, a full 60 percent of America's real estate activity takes place in the summer. But closing a home sale can take weeks, so it's a good idea to list your home early in the season.

August brings a lag in sales, as people go away on vacation and start to think about the new school year. Then real estate sales surge briefly in the fall before dropping in winter as buyers and sellers focus on the holidays. But by January, buyers are out again, and home sales steadily increase into spring.

However, if you miss the season, there is no need to panic. Homes can be sold in winter too. Typically homes are decorated during the holiday season and the competition is weak. Buyers may even want to take advantage of the tax deductions and may not get involved in long negotiating process. This would ensure a quick sale with little bargaining.

Due consideration should be given to local factors which may influence a particular market. Local economy is an important factor in deciding which season is the best one for a seller. A layoff in the local plant or factory may mean that spring is not necessarily the best time. Similarly, a start of a new industry may tilt the equations at the other end of the spectrum.

Factors such as mortgage rates and inflation in the economy will also decide a “good season” for real estate activity. These are beyond the seasonal variations and careful observation of local and national issues is necessary to track this.