If you’re looking to sell your home, you’re perhaps pondering if now is a good time. With the current spike in home prices, it can be tempting to hold off selling for another year or two. But who knows how the housing market will be in the coming years?
Whether you’re asking yourself, “should I sell my house now” or taking into account your options, there’s no one-size-fits-all answer. Generally, it depends on your personal situation and why you need to sell it.
Here’s a closer look at the current real estate market conditions and situations that can help you decide when and not to sell a home.
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2022 Housing Market
The property market across the country is still a seller’s market. As a result, more people are looking to purchase homes than there are available properties, driving up prices. Here are three factors that make the 2022 housing market a hot seller’s market.
Low Supply
The combination of tight demand and supply has led to the fast selling of homes. With a low inventory in the real estate market, the demand for homes is higher than the available houses for sale. This leads to bidding wars, shortening the time homes need to be on the market before selling.
Home Prices are Rising
The active need for properties has elevated home prices. In Spring last year, approximately a third of homes sold for more than the asking price due to the strong buyer interest. The trend seems to continue this year as home prices continue to rise.
Cash Offers are Overflowing
According to HomeLight, 31% of home purchases in 2021 were cash offers, while 54% of top real estate agents state that cash offers skyrocketed in Q1 2022 compared to Q4 2021. Home sellers are typically more interested in cash offers because of faster closing.
Is It Time to Sell Your House Now?
For many people, market conditions should drive your decision to sell or not to sell a home. While real estate market conditions are one major determining factor, your personal situation should be at the forefront.
That means the best time to sell a house is when your circumstances and local market conditions align. But it can be hard to know precisely when that is. That’s where you need expert advice. Keep reading to find out!
Reasons to Sell Now
If you’re still unsure when is the best time to sell your home, here are five reasons it’s time to list your home for sale.
You are in a Hot Seller’s Market
In a hot seller’s market, the demand for homes is typically higher than the number of available properties. This results in bidding wars among buyers, which may drive home prices up. During these market conditions, it’s the right time to sell your house. Taking advantage of buyer demand may help you sell your property at a higher amount than the asking price.
Your Home has a High Resale Value
For most homeowners, a house is one of the greatest lifetime investments. Depending on how you financed your initial purchase, there’s a good chance that your home could be worth more than what you bought for. As you make your mortgage payments, you’re building equity on your home. The higher your home’s equity, the higher the resale value.
Submit an online application form to inquire about Angel Oak Mortgage Solutions financing options.
Buy a home or refinance your existing mortgage with Zero Mortgage.
Older homeowners can get peace of mind and added financial security with a reverse mortgage from AAG.
Fairly Low Interest and Mortgage Rates
If mortgage interest rates are relatively low, it could be the best time to sell your home and purchase a new one. Making the most of low mortgage rates can help you attract a wide pool of potential buyers and get your house off the market faster.
While low-interest rates will help you sell your house quickly, you may struggle to find and purchase a new home due to the high demand.
You Have Recently Made Home Improvements
Home improvements typically increase the amount of equity and, eventually, a home’s value. This means you can sell your house at a higher price than what you bought it for. Home improvements can range from minor ones like applying new paint and updating lighting fixtures to major ones, such as a bathroom remodel, kitchen makeover, adding a new story, or building a deck or patio.
If you recently made preeminent home improvements, selling your house might be a good idea.
You Need to Move
If you want to move to a new location for any reason, consider selling your current home. Many homeowners relocate for various reasons, including work-related, downsizing, or buying a bigger house to accommodate a growing family. Whatever the reason you want to let go of your home, ensure that it’s a valid one to avoid regrets later.
Reasons to Wait
As much as there’s a right time to sell a home, there are situations you should wait. Here are some instances where letting go of your house immediately may not be the best choice.
You Don’t Have Enough Equity
Each time you pay off your mortgage balance, you’re building equity on your home. Selling your home with enough equity should make you enough to cover closing costs and make a profit. But if you have little to no equity, selling your house is a bad idea. You may want to wait until you build up more equity unless you’re trying to avoid bankruptcy or foreclosure.
You Just Refinanced
If you recently refinanced your home, there’s no reason to put up your home for sale. The fact that refinancing has helped you ease your financial hardships by lowering your interest rates and monthly payments, holding off selling might be the best thing. And if you haven’t considered refinancing, it might be a great alternative to selling your home.
You’re Worried About Your Next Big Purchase
While selling your current home may make much on the sale cash to cover closing costs, selling it may not be the best choice. Keep in mind that your next big purchase may come at a higher price tag along with other costly expenses. So if you’re worried about affording your next home purchase, it’s a good idea to wait until you have enough funds so that you can sell your home.
You’re Worried About Finding and Financing Your Next Home
If you’re in a seller’s market, it’s pretty easy to sell your home since the demand for homes is very high. However, you may struggle to find your next home during such real estate market conditions. And if this is your worry, don’t sell your home. Instead, wait for a more balanced market.
