If you’re confused by what you read or hear in the news regarding the housing market, you are not alone. While one headline blasts that mortgage rates will continue to rise, another claims they’ll even out in 2023, somewhere around 5%.
So is this a good time to sell your home?
Opinions also vary on whether home prices will continue to rise and by how much. Then, there are the truly off-the-rails folks who describe the current market as a ‘housing bubble.’
Although there is no widespread consensus (as of this writing) on which direction housing will go, I can tell you we are not in a housing bubble akin to the 2008 collapse. That was fueled by inexpensive credit and relaxed lending standards, neither of which exist today.
Yes, the market appears to be shifting, but it’s sporadic, and not yet consistent nationwide. For example, if you want to sell your home in Florida, demand is still strong. But if you’re in Southern California, you may want to sell your home later in 2023.
Let’s take a look at why now may be a good time to sell your home, and why, if you need to sell, you shouldn’t wait.
Prices Are Still on The Rise
Despite the doom-and-gloom housing market promoted in the media, “… from June through July of this year… prices still rose in 98% of US markets,” according to CNN.com’s Anna Bahney, citing a National Association of Realtors study.
In fact, according to that study, the median price, nationwide, for a single-family home increased “… 8.6% in the third quarter, reaching $398,500.”
And, although the number of home sales is dwindling, prices are still on the rise.
“The median price of an existing home sold in October was $379,100, an increase of 6.6% from the year before,” according to Diana Olick (citing research from National Association of Realtors) at cnbc.com.
Surprised?
So, yes, home prices are still appreciating, just not as fast as earlier this year. Eventually, prices will fall. Aimee Picchi with cbsnews.com cites the Dallas Fed’s claims that the drop could be “… as much as 20%.”
If you need to sell your home, you might want to consider doing so as soon as possible. You’ll still be able to get your home sold for more than you would have realized before the hot sellers’ market.
Here are some ideas to ponder:
- Check with your real estate agent on the status of the local market.
- Are homes still selling for over the asking price?
- If the market is still favoring sellers, don’t be afraid to jump in!
- Are there cash investors in the market for homes like yours?
- Are there still low levels of housing inventory? This situation limits a home seller’s competition.
The Supply of Gomes Available is Still Quite Low
The number of homes available represents the supply side of supply-and-demand in the housing market. Also known as ‘inventory,” it remains stubbornly low, “… which is why some homes for sale are still receiving multiple offers,” claims Lawrence Yun, the chief economist at the NAR.
He goes on to say that, in October, nearly one-fourth of homes for sale sold for more than the asking price.
But here in South Florida, supply is now up 114% since it bottomed in January, 2022. That’s quite the jump in just 10 months. So before inventory gets back to pre-pandemic levels, you should sell your home now before competition is too strong.
Sell Your Home as Buyer Demand Wanes
In an effort to cool inflation, the Fed is raising interest rates at records speed. When this trickles down to the mortgage market, a certain number of homebuyers will no longer be able to afford a home and will drop out of the market.
If you own a ‘starter home,’ this is something to consider when deciding whether or not to sell your home. A starter home, by the way is one with less square footage than average for the area and priced at the lower end of the spectrum.
If, on the other hand, you’ll be selling a larger or even a luxury home, you’ll still find many buyers in the market. At least for now, so time is of the essence. If rates continue to rise, more buyers may decide to put their home purchases on hold.
Your real estate agent is your best source of information at this time. Thankfully, that information is free. Call me today. I’ll give you a thorough home equity review and discuss how our local market is behaving. This time together will help you decide if you should sell your home now, or not.
