Home Price Growth Could Peak in May -- So You May Want to List Your Home Soon

It could pay to get moving with that listing.

To say that right now is a good time to sell a home would be an understatement. Home values are up on a national level, and things could get even better from a seller's perspective.

In fact, Zillow expects home value growth to continue rising through the spring. It also anticipates annual home price growth peaking at 21.6% in May.

That's the good news. The bad news, though, is that Zillow then anticipates a gradual decline in home price growth so that come January of 2023, it will be limited to 17.3%.

Now to be clear, 17.3% growth is nothing to scoff at. But if you've been thinking about selling your home, it could pay to get moving with that listing. If you're able to capitalize on the spring market, you could end up walking away with a much more attractive offer.

Should you try to sell your home soon?

There are plenty of benefits to listing your home in the coming weeks besides potential peak home price growth. For one thing, mortgage rates are currently sitting at reasonably attractive levels. Granted, they're not as low as they were throughout 2021, but they're still competitive on a historical basis.

That could change in the course of the year as the Federal Reserve moves forward with plans to raise its short-term borrowing rates. Though the Fed doesn't set mortgage rates, or any consumer interest rates, its actions can have a big influence on consumer borrowing. If mortgage rates increase, it could result in a decline in buyer demand -- and a plunge in home prices.

What’s more, spring is a great time to list a home from a logistical point of view. At that point in the year, it's not oppressively hot or cold, so it's a good time for buyers to be out and about. It's also a great time to show off a home's curb appeal.

Plus, from a timing perspective, spring is a popular time for buyers with children to look for a home. Those who purchase a home in April or May might manage to close on their mortgages by June or July and move during the summer, when school isn't in session and the process is easier to manage.

It's for these reasons that getting your home in order in the coming weeks makes sense. While you may have plenty of success listing your home after May, it could work to your advantage to do so sooner.

How to gear up for a home sale

Selling a home isn't for the faint of heart. One of the first steps you may want to take is finding the right real estate agent for the job. An agent can not only help you price your home strategically, but also market your home and negotiate with prospective buyers. Plus, an agent might help you decide what updates or repairs need to be made before your home goes on the market.

And speaking of repairs, before listing your home, make sure to address any glaring issues with your property, like a chipped fence, stained carpeting, or peeling bedroom paint. Even minor issues like these could be a huge turnoff for buyers, and making the right fixes could spell the difference between getting a better offer or a lowball one.

While there's no guarantee home price growth will peak in May, Zillow seems sold on that idea. If you're looking to sell your home this year, you may want your listing to align with that time frame.