Should I Sell My House Now?
The state of the market and your personal situation both play important roles in deciding if you should sell now. But the short answer is: Yes.
With buyer demand still holding steady and a continued shortage in available homes, most real estate experts agree that now is a good time to sell your home. As interest rates continue to climb, it may also be beneficial to sell sooner rather than later. Putting your house on the market is a big decision, so be sure to consider both the financial and personal factors involved:
When it’s a good time to sell your home
According to Fannie Mae’s Home Purchase Sentiment Index® (HPSI) for November 2022, 54% of respondents believe that now is a good time to sell a house. And despite cooling prices, it’s still a seller’s market. Historically, spring and summer are the ideal times to list, but there are other scenarios that might make selling now a wise choice.
Housing supply is low
When there is a high demand but the number of available houses is low, that’s a seller’s market. Houses typically sell quicker and buyers are more competitive, meaning sellers often have the upper hand on pricing and negotiations. The National Association of Realtors® (NAR) is anticipating housing inventory to remain tight in 2023, which bodes well for those looking to sell.
Interest rates are low
Lower interest rates means financing a mortgage is less expensive. This means more people can become potential buyers. The more buyers there are, the more demand there is. The record-low interest rates of 2021 are a big reason why the market was so hot last year.
You’re ready to downsize
It’s no secret that larger homes are costly to maintain. If you’re thinking about downsizing to a smaller, more budget-friendly home, that’s a very good reason to sell. If upkeep has become too much to handle or you have health or mobility concerns, downsizing also makes sense.
You’re selling a second or inherited home
If you’ve inherited a home or are looking to off-load a second property, the current market works to your advantage. If you’re not looking to buy another house, the profits can go directly into your pocket.
You need to relocate
There are many reasons why you may need to move, from getting a new job to navigating a divorce to retirement. Whatever the reason, your personal situation can make selling now a must.
When it makes sense to wait to sell your home
While we are still in a seller’s market, there are reasons why homeowners may want to hold off on selling. Here are some things to consider that may have you hitting pause on that listing.
Housing supply is high
When supply is higher than demand, you have a buyer’s market. The opposite of a seller’s market, a buyer’s market means sellers are competing. This isn’t really a concern at the moment since the supply shortage is expected to continue into next year.
Interest rates are high
When interest rates are higher, financing a mortgage is more expensive. This leaves many potential buyers priced out of the market. Fewer buyers means fewer bids and longer listings. This is a concern right now as the Federal Reserve continues to raise interest rates to battle inflation, but with demand holding steady, it may or may not affect your local market.
You can’t afford to buy a new home after selling
If you can make money selling your current home but won’t have enough to make a sizeable down payment on your next home, it’s wise to wait. Not only are interest rates higher for new mortgages, rental rates have also gone up considerably. If your short-term gains from selling will be outweighed by those costs, you might want to stay in your current home and build equity.
You refinanced a couple of years ago
Between 2020 and 2021, many people refinanced mortgages to take advantage of historically low interest rates. 2022, on the other hand, saw interest rates rise several times. If you refinanced before these increases, you locked in an interest rate that you won’t be able to get now, so it could make sense financially to hold off.
Capital gains taxes apply to your sale
It’s tempting to sell if your house has dramatically increased in value. But consider the tax implications for selling a house. If you’ve lived there as a primary residence for at least 2 of the last 5 years, then you’ll likely be able to avoid paying a capital gains tax. If not, then the tax would apply.
How to sell your home fast when it’s time
If you decide to sell and time is of the essence, don’t worry. You have options. Here’s what you’ll need to do:
- Pick a selling strategy: You can find a traditional agent, go FSBO or opt for a quicker sale off-market.
- Get your house ready: If you don’t have the time or resources to get your house market-ready, Sundae can help you sell your house as-is.
- Price to sell: Make sure your asking price is appropriate for your market.
- Time your listing right: Spring is best, but there are pros and cons to each season.