The past few years have been a home seller’s dream: High demand and tight supply sparked bidding wars, with buyers waiving inspections and other traditional safeguards to land a home. Meanwhile, prices hit record highs, and sellers reaped huge rewards.
Now the tables seem to be turning. Higher mortgage rates are dampening demand and prices are leveling off.
So should you sell your home or wait?
Many experts say the time to sell is now, and consumers tend to agree: “According to Fannie Mae’s most recent Home Purchase Sentiment Index, about 51 percent of consumers believe that now is a good time to sell,” notes Bankrate.com. Here are some reasons:
As the Federal Reserve aims to control inflation, rates are rising, with more increases likely in the future. This can lessen the pool of buyers down the line who can afford to purchase your home. Best to sell now before conditions get more challenging for buyers.
More homes to choose from when you buy.
With buyers dropping out of the market, there’s more inventory. You’ll have better choices of where to move once your home sells.
While the above is true, inventory is still low overall.
“To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there would need to be a six months’ supply of homes, reports Keeping Current Matters website. “According to the latest report from the National Association of Realtors, in July, there was only a 3.3 months’ supply.” In other words, if you price your home right, it will still be in demand.
Your home equity grew by record amounts.
Home appreciation has skyrocketed in the past few years. This means you’ll have made equity gains that can be used when buying a new home. “It may be just what you need to cover a large portion (if not all) of the down payment on your next home,” notes Keeping Current Matters.