The real estate market has changed. While the seller’s market we once had is over, the latest data suggests sellers still have a clear advantage. Here are five good reasons to go ahead and list your home now, in addition to the fact that this part of the year has historically been a great time to sell.
Homeowners’ equity is near an all-time high. Home equity is the difference between the current value of your home and the amount you still owe on your mortgage. Recent surveys show that home equity levels nationwide have risen to 70%, nearly the highest in 40 years. If you had 70% equity in a home you sold for $400,000, you’d walk away with $280,000 (less closing costs and commission). That money could be used to buy your next home, in an all-cash or high-cash deal. That makes today’s mortgage rates less of a factor and puts you in a better position when competing with other buyers.
The inventory of homes for sale is very low. Nationally, there are a little more than half the number of homes for sale as there were before the pandemic. People are staying in the same home longer. Some want to hang onto a super-low mortgage rate. Baby boomers who used to downsize are deciding to age in place. Whatever the reason, this low supply of listings means buyers do not have a big selection of properties to consider. Therefore, new listings get lots of attention immediately, a good thing for sellers.
No one knows where mortgage rates will go. The truth is, no one can accurately predict whether mortgage rates will rise or fall, by how much, and when that might happen. So, don’t get caught up in delaying your home sale—an important life decision—on where mortgage rates might be heading.
Home prices are still rising. Although home prices hit a record high in June 2022 and then edged downward, they started back up in February and are now closing in on last year’s peak. In addition, home prices are still ahead of where they were in the same month a year ago. Much of this price movement has been caused by the low home inventory and high buyer demand.
It’s personally the right time for you to sell. Important life events often motivate a home sale. These include a new job in a new location, another child, the loss of a loved one, or some other major life change. In these cases, you should not hold off selling your home because you’re trying to time the market or predict interest rates.
For help in listing your home for the best price—and finding your dream home—please text, call, or email us today!