Should I Sell Now or Wait?
Should I Sell Now or Wait?
Key article takeaways
- Late spring and early summer are generally the best times to sell a house, but we don't know where inventory will be.
- Traditionally, low mortgage rates and short supply make it a good time to sell.
- While today’s rates are still high, low inventory is keeping sellers in the driver’s seat in most markets.
If you’re considering selling your home, it’s critical to understand the current real estate market dynamics. The volatility that dominated the market in recent years amid pandemic-related pressures is starting to ease, but that doesn’t mean there aren’t still challenges.
For one thing, mortgage interest rates are ticking upward again after a brief decline and stood at 6.66 percent as of late March. That reality is making mortgage payments increasingly expensive and driving more than a few potential buyers to the sidelines — certainly not ideal if you’re on the selling side of the equation. At the same time, February’s median home prices saw a year-over-year decline for the first time in more than a decade, according to the National Association of Realtors (NAR).
But the popular adage that all real estate is local continues to hold true, meaning there are plenty of places around the country where buyer demand and prices both remain strong. And with housing inventory still at an extremely low 2.6-month supply, per NAR, the nation overall is still very much a seller’s market. So is 2023 a good time to sell your home? Here are some insights to help you sort through the question.
Is now the right time to sell my house?
If popular opinion is any guide, 2023 may still be a good time to sell your home despite the evolving market dynamics. According to Fannie Mae’s February 2023 Home Purchase Sentiment Index, more than half of respondents still feel it is a good time to sell.
“Right now is definitely a good time to sell,” says Jade Lee-Duffy, a Realtor with TXR Homes in San Diego. “Depending on where you live, housing demand has most likely jumped. In my market, San Diego, demand has recently gone up 28 percent. And housing inventory is still historically low — about half as many homes are on the market now as compared to pre-COVID times.”
Of course, deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and personal, before putting your home on the market.
Your local market dynamics play a large part in whether it’s a good or bad time to sell, says Katie Severance, a Realtor with Douglas Elliman in Palm Beach, Florida. “In some areas, selling now is the right thing to do because prices are still climbing — or, at least, are not yet falling,” she says. “In other markets, prices are falling fast, so it might be best to wait to sell until 2024, when the market correction hopefully stops and interest rates come down and stay down, which will spur sales once again.”
When is a good time to sell a house?
Historically, spring and summer are usually the best times of year to sell a house. Realtor.com recently went so far as to specifically declare the week of April 16–22 the best time to sell. But beyond seasonality, there are many factors that might make selling your home a wise decision. Often the reasons are based on financial calculations, cost of living expenses and other considerations, but there may also be other factors that make selling your home the right choice. These include:
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If rates are low |
Low interest rates entice more prospective buyers to enter the market, which is advantageous for sellers. An increased number of buyers shopping for homes often leads to bidding wars and drives up home prices, meaning you can likely sell your home for a solid profit. |
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If supply is short |
A shortage of housing inventory also drives up demand and prices for available homes. What’s more, when housing supply is low, homes on the market tend to sell much faster. |
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If you’re ready to downsize |
Downsizing may be a more budget-friendly choice than maintaining a larger, costlier home. For older homeowners, downsizing may even be a necessity. “If you can’t handle the stairs anymore, or if there are more repairs than you can manage, it may be a good time to sell,” says Rick Albert, a broker with Lamerica Real Estate in Los Angeles. |
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If you need to relocate |
If you’re relocating to a new state for a job or want to enjoy your retirement in a new area, and you need the profits from the sale to put toward your next place, selling may be unavoidable. “The time to sell is when you need to sell,” says Severance. “It’s a no-brainer to sell if you have somewhere to go.” |
Tips to sell your home
If you’ve considered the pros and cons and decided to put your home on the market, here are some steps you can take to get the best deal possible.
- Find a good agent: The advice and guidance provided by a professional real estate agent can be invaluable, particularly amid a hot or unpredictable housing market. Take the time to interview several candidates, and ask friends or family members to recommend agents they’ve had a good experience with. “A Realtor can help you create a game plan to get your home organized and in shape to present it in the most favorable light,” says Jen Horner, a Realtor with Masters Utah Real Estate. “The right preparation will allow sellers to feel their home has solid representation.”
- Make repairs if needed: To help land the best offer for your home, make necessary repairs. “Sellers need to understand that they only have one chance to make a first impression,” says Horner. “Your Realtor can walk the property with you and make suggestions for preparing your home to hit the market.”
- Declutter the interior: You should also make an effort to tidy and declutter your home, allowing prospective buyers to see the living spaces clearly. “Less is always more,” says Horner. “The fewer items in a room, the larger it will feel. Remove any personal items. Position furniture to make the layout of the room flow and remove any unnecessary furniture.”
- Add curb appeal outside: Your home’s exterior is another part of making a good first impression, and it’s worth freshening up the curb appeal before buyers see it. That can include improving or upgrading landscaping and walkways, or even be something as simple as a fresh coat of paint on the front door.
- Invest in home staging: Staging a home for sale, particularly if it’s vacant, can help prospective buyers visualize how rooms can be used and present a more inviting and polished image. “Staging can help show the buyer how to optimize the space,” says Horner.
Article via YahooFinance. By Mia Taylor.
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