Many homeowners have been on the fence in the past couple years. They know it has been a strong seller’s market with high buyer demand, quicker home sales and rising prices. However, it’s very natural to want to wait. If prices are going to keep increasing, why shouldn’t you hold off and time your sale when everything is at its maximum value?
More Than Just Selling Price
This is a common real estate myth for home sellers (read our previous article for more common myths). When it’s the best time to sell your house will depend on a number of different factors beyond just the selling price. You have to move when it is right for you. After all, home prices are relative. You may be able to sell for more later and maximize your equity. However, that also means that you’ll be paying more for your new home because the prices are up. There may be no real financial advantage to waiting.
The Market is Shifting
Either way, the time to get top dollar for your home may be now in the summer of 2022. There have been many indications that the once red hot seller’s market is gradually cooling down. Inflation has affected the real estate market and mortgage rates have been rising, thus reducing some of the buyer demand. More new houses and residential developments are being built. Housing inventory is growing. Home prices aren’t appreciating quite as rapidly as they were a year ago, and houses are taking a little longer to sell on average.
We are a long way from shifting over to a buyer’s market. It will still be a seller’s market for the foreseeable future. The point is we’re starting to see a leveling out of selling conditions that simply can’t be sustained for too long. The real estate market is always going to be cyclical in nature.
Why Homeowners Are Waiting to Sell
Still, many homeowners are holding back from listing their properties. Either they are waiting for a higher selling price in the future or they are worried about the higher costs of buying their next home now. The thing is, waiting really won’t provide any meaningful benefits for these homeowners. They could wait until prices are at their absolute peak, but then it’s not a great time to become a buyer. Or, they can wait until prices start to drop a little. That might put them in a better position as a buyer. However, it may mean fewer offers, a slower sale and/or a lower selling price on their current home.
As we said, market conditions are always relative. There will always be pros and cons to the timing of selling a house and buying a new home. There probably will never be a perfect time to move if you are looking only at the market trends. The right time to move is when it makes the most sense for you and your family—financially and emotionally. You have to weigh all your options and determine when its best for you to sell and/or buy.
2022 Real Estate Trends
Many real estate experts are predicting that the rate of appreciation will peak soon. Appreciation may still be happening and prices can continue to go up. Just the rate of appreciation will start to dip and the prices won’t go up at as fast a pace. Now may be the ideal time to sell and truly get top dollar for your property—home equity that you can then leverage into a nice home purchase if you are ready to move up or down.
Find the Right Solution for You
You may want to complete your current home sale before buying a new home. Today’s home sellers are looking for fewer contingencies and complications on purchase offers. You may opt to rent for a little while until you find the ideal home within your budget. As a home seller now, you will want to consider all the details of any purchase offer(s) you receive. Be wary of complex contingencies or unstable mortgage funding. One buyer may offer you a higher price. However, it may not actually be the best offer.
The point we are trying to make here is that there are so many different factors to consider other than just the prevailing real estate market conditions and current home prices. Figure out the timing that’s right for you and make the best decisions for you and your family’s future.
Having a trusted real estate team on your side will help you make smart decisions about your home sale and determine the best timing for your move. If you are selling and/or buying a home in the Southeastern Pennsylvania or Northern Delaware areas, contact The Cyr Team for an introductory real estate consultation.