There’s no denying the real estate market has changed in the last few months. To ignore that fact would be irresponsible. But do those changes mean you should hunker down and forget about selling your house for the foreseeable future?
In this video (and transcript below), Greg Kurzner gives you five factors to consider when deciding if now is a good time to sell, or whether you should wait.
Hi, I’m Greg Kurzner with ERA Atlantic Realty. And the question is, should I sell my house this year? That is a big question for homeowners. We’re making this video in late September of 2022. Up until just a few months ago, the questions of whether or not you should sell your house were pretty simple and the answer was “yes!”
But the market has really shifted and the answer to the question now isn’t as simple or obvious. So let’s look at the factors that you should consider when deciding if now is a good time to sell your house.
So, #1, do you really need to sell? Obviously, if something in your life is compelling you to move, such as a job change or health issues, then you probably don’t have much choice. Selling is necessary.
If, on the other hand, you’re just thinking about making a move, perhaps to get a larger house or to downsize, or to get some particular feature in your house that you don’t have now, then selling for you is probably optional. You’ll have time to weigh your options and make your move if and when you’re ready.
#2, housing inventory is increasing. Why is this important? Well, if you were concerned that if you sold your house, you would not be able to find your next house, or you would have to pay an exorbitant price for your next house, this increased inventory is good news.
With rising interest rates and inflation and recession fears, potential homebuyers have pulled back. The buying frenzy that we’ve seen over the last couple of years is cooling off. The number of available homes on the market has increased as a result. So if you worry that you won’t be able to find your next house if you sell your current house, the good news is that more houses are available for you to look at.
Before we continue, I just wanted to offer you a free Home Seller’s Guide. It gives you lots of guidance and answers about selling your house. Request a free copy by visiting HomeSoldKit.com.
So let’s continue answering the question should I sell my house this year?
Well, #3, it’s still a seller’s market, and while demand is down and home supplies are up, we are still in a seller’s market. What that means is that a the number of available homes is still not large enough to equal the demand. To reach a balance between supply and demand, there would need to be about a six month supply of homes.
According to the most recent report from the National Association of Realtors, in July, we had only 3.3 months of supply of homes for sale. So sellers are still in the driver’s seat and can expect homes to sell fairly quickly at or close to asking price.
#4, your home is worth much more today. Why is this important? If you’re worried that the next house you buy is going to cost you more don’t forget that the home that you currently own is also worth more, most likely offsetting the increased cost of buying your next house.
Unless you’re making a substantial upgrade from your current home to the next, or if you’re moving from a low cost housing market to a more expensive housing market, rising home prices should offset. Your home’s value has probably appreciated substantially in the last couple of years. In fact, according to Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $64,000 over the last twelve months. If you’ve looked at the price of homes that you would like to purchase and thought that the prices were too far out of reach, don’t be too sure until you find out how much your current home is worth. You might be pleasantly surprised.
#5. Mortgage rates are still relatively low. Yes, mortgage rates have risen over the last few months as the Fed has tried to cool off the economy. However, if you look at rates compared to the last 50 years, rates are still below mortgage rates for most of those years. We’ve been spoiled with historically low rates during the 2010s, but rates are still affordable.
If you’ve hesitated to sell because you knew your next mortgage would cost more than your current mortgage, it’s important to get some perspective about mortgage rates. Yes, they are higher than even a few months ago, but they’re still lower than rates your parents probably paid decades ago.
So hopefully you now have a bit more perspective on what selling your house would mean in our current economic situation. There are positives and negatives, but if you want to sell your house, now is still a good time to do so. To get more free information and help for selling your house, request our free Home Sellers Guide by going to HomeSoldKit.com.
We are always happy to answer your questions, so post any comments below, or you can reach out to us at 678-869-9000.
I’m Greg Kurzner with the Kurzner Group at Era Atlantic Realty. Watch our next video for more help on selling your house.