Should I sell my house now or wait?

Late spring and early summer are traditionally considered the prime seasons to sell a house. However, the current real estate market presents a unique set of challenges and opportunities. While mortgage rates have surged past 7 percent, low inventory continues to favor sellers in most markets. To make an informed decision, it’s crucial to understand the dynamics of today’s real estate landscape. In this blog post, we’ll explore the key factors to consider when determining if it’s the right time to sell your home.

Current Market Conditions

As of September 2023, the average 30-year fixed mortgage rate stands at a substantial 7.55 percent, a level not seen in over two decades. While this may deter some potential buyers, low inventory levels are keeping the market tilted in favor of sellers. Additionally, home prices are near all-time highs, with the national median sale price reaching $407,100 in August 2023, a 3.9 percent increase year-over-year.

Factors Favoring Selling Now

1. Low Interest Rates (when applicable):
   • Historically, low interest rates attract more buyers, leading to bidding wars and higher sale prices.
2. Short Supply:
   • Limited housing inventory drives up demand and prices, often resulting in faster sales.
3. Downsizing or Relocating:
   • If you’re looking to downsize or relocate, selling may be the most practical option.
4. Financial Need:
   • If you require the proceeds from the sale for your next move, selling becomes a necessity.

Factors Favoring Waiting

1. Rising Mortgage Rates:
   • In a market with increasing rates, it may be wise to wait for a larger pool of qualified buyers.
2. Recent Refinancing:
   • If you’ve recently refinanced, selling immediately may not be financially advantageous.
3. Upsizing:
   • Consider if purchasing a larger home is feasible, especially in a competitive market.
4. Home Condition:
   • Postponing a sale to address necessary repairs can lead to a more favorable offer.
5. Lack of Game Plan:
   • It’s essential to have a clear plan for what comes after the sale before proceeding.

Selling During a Recession

While a potential recession looms, personal circumstances should guide your decision. Selling before a recession, if you’re concerned about one, may be a prudent move. Downsizing or renting could lead to reduced overall costs.

Tips for a Successful Sale

1. Find a Local Agent:
   • Seek guidance from a knowledgeable real estate agent familiar with your area.
2. Make Necessary Repairs:
   • Ensure your home makes a positive first impression by addressing any needed repairs.
3. Declutter and Stage:
   • Present your home in the best light possible by decluttering and staging the interior.
4. Enhance Curb Appeal:
   • Invest in improving your home’s exterior to create a favorable first impression.

Alternative Selling Options

For those seeking a faster sale, consider iBuyers or cash homebuying companies. These options offer speed and convenience but may come at a cost in terms of profit. It’s crucial to weigh the benefits against potential downsides.

Conclusion

Deciding to sell your home is a significant undertaking that requires careful consideration. Your future plans, financial needs, and the local market conditions should all factor into your decision. If you choose to move forward, enlisting the expertise of an experienced Realtor is a wise step toward achieving a successful sale.