It’s currently a seller’s market — but how long will it last?
As we get deeper into spring, you may start toying with the idea of selling your home. Spring is typically when housing inventory increases, and it’s a good time to sell from a buyer interest and curb appeal standpoint.
But this year, in particular, it really pays to sell your home now as opposed to waiting. Here’s why.
You don’t want to delay
Today’s housing market is pretty much as good as it gets for sellers. And that’s why it pays to move forward with a sale now, as opposed to waiting a few months or a year to see how things shake out.
In January, home prices were up over 19% on an annual basis, as per the S&P CoreLogic Case-Shiller Index. Meanwhile, the housing market is still starved for inventory. And while we could see a boom over the next few months, as of mid-April, the supply of available homes for sale is quite low.
That sets the stage for a world of profit for sellers with properties to unload. So, if you’ve been thinking of selling your home, or if you’re a real estate investor looking to get rid of an income property, now’s the time to act.
If you wait too long to sell your home, you’ll give the real estate market time to cool off. The result? A lower sale price, which isn’t what you want.
Don’t wait for mortgage rates to keep rising
Another good reason to sell your home now and not wait? Mortgage rates have been rising sharply for the past few months, and recently, the average 30-year loan rose above the 5% mark.
If borrowing rates keep climbing (which is likely to happen as the Federal Reserve moves forward with planned rate hikes), buyer demand is apt to wane. Once that happens, home values should start to come down.
All told, it’s clearly a seller’s market, but whether that will be the case later this year or a year from now is yet to be determined. If you’ve been thinking of selling your home, it pays to act quickly rather than run the risk of market conditions deteriorating from a seller’s perspective.
To be clear, there’s no need to sound an alarm about a full-blown housing market crash. Rather, it’s just that right now, sellers have a prime opportunity to cash in on big profits, so that’s a route it pays to take.
The only reason to hesitate in selling a home is if you’re worried about affording a replacement property. If you’re selling and downsizing or dumping an income property, this shouldn’t be a concern.
Credit: Maurie Backman Apr 13, 2022