July 5, 2022
If you’re thinking about selling your home, you’re probably wondering if now is the time to do it. With the recent volatility of the housing market, a lot of sellers are on the fence. Home prices shot up in 2020 and 2021 – but are they still rising, or are they on their way down? When’s the best time to list a home?
Whether you’re asking yourself “should I sell my house now?” or just considering your options, it’s important to know there’s no right answer for everyone. The market will have an important impact on the sale of your home, but it’s also important to assess your personal situation and reasons for selling.
Let’s talk about the housing market conditions in early 2022 and break down some advice on when you should and shouldn’t sell your home in any market.
Is Now The Time To Sell A House?
Real estate experts have speculated that home prices and the demand for houses will continue to increase in early 2022, albeit at a slower rate than we saw in 2021. Low mortgage rates and limited inventory continue to make the market conditions very competitive for buyers. In other words, we are still in the midst of a seller’s market. That means finding your next home may be somewhat difficult. To figure out what the best choice is for you, you’ll need to weigh the pros and cons of each option.
You have three main choices:
- List your home for sale
- Hold off on listing your home until the market balances out
- Stay in your home for the foreseeable future
The course of action you take will depend largely on your reasons for moving. If you need to relocate quickly for work, family or other personal reasons, you might come to a different decision than a seller who just wants to downsize to a smaller home. To help you decide whether it would be a good idea to sell and take advantage of high sale prices right now or wait until it will be easier to buy another house, you should be sure to do your own research on your local market.
When To Sell
If you’re still unsure how to decide when the right time to sell is, here are a few points to consider that may help you reach an answer.
If Interest Rates Are Low
If mortgage interest rates are low, it might be a good time to sell your home and find a new one. Lower interest rates mean you pay less in interest – or, in other words, save more money financing your new house.
Low rates can also be a double-edged sword for homeowners, though. They often create a lot of demand, since buyers will be looking to take advantage of low rates.
This means that you can potentially sell your home at a great profit, but you may struggle to find and purchase a new home after that due to high demand. If you’re not worried about buying and selling a house at the same time, though, a period with low rates is a great time to sell your house.
If The Supply Is Low
In a buyer’s market versus a seller’s market, there are more houses on the market than there are people to purchase them, meaning the home buyer has more negotiating power when house hunting. In a seller’s market, on the other hand, there are less houses for sale and more buyers looking to find a home. In this situation, the seller has more negotiating power at the closing table – which makes a seller’s market a great time to sell your house.
If home buyers are competing for a smaller number of homes, the seller can often set a higher competitive asking price and compromise less on contingencies and other negotiated terms when finding a buyer for the house.
2022 is still a seller’s market if you’re looking to take advantage – but it’s important to note that the market is not as competitive as it was in 2021. You may have heard stories about sellers able to find buyers to take their home as-is, or in some cases, even without an inspection in 2021. These sorts of sales are expected to become less common this year as the market cools down ever so slightly.
If You Need To Relocate
If you need to move, you should also consider selling your house. If you’re in the market to buy a second house while keeping and maintaining your current one during the move, this may not apply to you – but in many cases, when homeowners move for a job or other urgent reasons, they may sell their current home and buy a new one.
There are plenty of reasons you may need to relocate, including moving for a new job, downsizing to a smaller home, buying a larger home to accommodate a growing family, etc. If there’s a strong personal reason for you to sell your current home to purchase a new one elsewhere, you should definitely consider it, especially if that reason is time sensitive.
If Your Home’s Value Has Increased
One great bonus of a strong seller’s market is that your home’s value may have increased with demand. If your home is appraised for a higher value than it held previously, you may want to consider cashing in on your home’s equity by selling. Depending on how much your home has increased in value and how much equity you’ve built in the home, you could stand to make a significant profit by selling while homes are still in demand.
Source: rocketmortgage.com ~ By: Sidney Richardson ~ Image: Canva Pro