Are you thinking about selling your home? If so, you’re likely questioning whether now is the best time to do it. With the recent fluctuation in the housing market, many homeowners need more certainty and confidence.
With the volatile housing market of 2022, it’s natural to wonder if now is the best time to list your home. Are sale prices still trending upwards, or are they on their way down? Knowing when to put up a “for sale” sign can help maximize profits. Take advantage of this moment by discovering the current real estate climate.
If you are wondering whether or not selling your home is the best option for you, it’s essential to consider that there isn’t a single answer which fits everyone. The local market will affect how quickly you can sell your house. However, consider any unique circumstances and reasons why this might benefit you.
Let’s explore the housing market and discuss helpful tips on knowing when to put your home up for sale regardless of market conditions.
The Best Time of the Year To Sell a House
Traditionally, homeowners tend to list their property in the warmer months of spring and summer due to ideal weather conditions – especially for those in colder climates.
The best time of year for home selling is when it’s warm and the best month (or months) are from March to May. People commonly desire to buy a new home in early summer before the new school year commences.
Buyer enthusiasm for viewing properties during spring and summer is likely to be further boosted by the longer days these seasons bring. By increasing the exposure of your listing through more website traffic, you attract buyers who are house hunting and increase the probability that you’ll receive multiple offers.
All regions experience seasonality to some extent, though the intensity of each season can vary from place to place.
For example, in Florida, where temperatures are usually milder, there is not much of a contrast between peak and off-peak seasons. During the summer and winter, you will find vast disparities in colder places like New York.
Knowing the seasonal sales patterns and market trends can help you anticipate the year ahead.
The Worst Time of the Year to Sell a House
As is typical, activity in the housing market tends to slow down during the final quarter of any given year, typically making it one of if not the quietest three-month periods.
During autumn and winter months, property sellers only sometimes enjoy favorable weather. Damp weather often leaves muddy messes and makes open houses a hassle. During the winter, when windows and doors are shut tight to keep warm air in and the cold out, pet odors can intensify due to prolonged exposure.
Suppose you live in an area prone to heavy snowfall during the winter. In that case, it’s a good idea to remember that many potential buyers might not want to move when icy conditions are present and may opt instead for spring or summer moving plans.
To maximize the chances of selling your house, avoid listing it in October and December. During those months, families have their energy diverted by education matters and prepping for the holiday season. Also, many home buyers opt to postpone their search until after the holidays.
From the figures, October and December are among the least opportune times to sell a home. These two months prove considerably more difficult for sellers who aim to meet their asking price or find success in making a sale compared with other months.
Is Now a Good Time to Sell a House
If you’re at a loss for the ideal time to sell, here are some helpful points that may guide your decision.
Typically, it’s advantageous to sell your home during the following conditions:
- Increase in home value
- Low interest rates
- Need to relocate
- Seller’s market
Increase in home value
If the market value of your home has increased, take advantage of this by cashing in on the equity you have accumulated. Depending on your house worth and the amount of equity you’ve gained, selling could be lucrative while homes are still highly sought-after. Make sure to look at all possible options to profit from this appraisal increase and set your list price accordingly.
Low interest rates
Think of it this way -lower interest rates mean you get more bang for your buck when purchasing a new house and save money in the long run on loan payments.
Affordable rates are a blessing for homeowners but can also have downsides: they tend to generate high demand since buyers jump at the chance to snag them. However, if you’re planning to buy again after selling, be aware that there is high demand for homes due to low rates.
Need to move
If you need to move, think about selling your current home. It’s not necessary if you plan to acquire another residence and maintain both properties during the relocation process – but it could work out better for you when relocating for employment or other pressing issues. Selling your existing house can be more cost-effective than attempting to keep up two homes simultaneously.
Seller’s market
In a buyer’s market, the real estate inventory is greater than demand, thus giving home buyers additional leverage when looking for a new house.
During a seller’s market, there is less supply and more demand for houses. As a result, sellers have the upper hand in negotiating closing deals on their homes.
When the housing market is competitive, and many buyers are vying for a limited number of homes, you can increase your asking price and be more flexible on negotiated terms. This way, selling your home will be much easier when finding potential buyers.
The Current Real Estate Market State of Play
What’s the current state of the real estate market in the United States? That’s a difficult question to answer but an important one for buyers and sellers alike.
Here are some current real estate market characteristics and how that might affect your decision to sell.
Demand is high, and supply is low
Suburban living is becoming more attractive to city dwellers and driving the demand for single-family homes. Millennials are driving suburban expansion as they purchase their first home or start a family.
Homebuilders need help to keep up with the current demand. A startling shortage of homes on the market has caused unprecedented prices, fierce bidding wars, and incredibly high offers over asking prices due to an extreme buyer-to-home ratio during COVID-19.
Home prices are high, but may drop
In 2020, there was an unprecedented surge in demand for single-family homes yet limited supply. Consequently, prices skyrocketed and are predicted to stay high throughout 2023.
The influx of millennials reaching the age for typical home ownership means that demand will remain high, and prices should be protected from experiencing a drastic drop.
Despite a robust housing market, house prices remain vulnerable to declines.
Mortgage rates have drastically skyrocketed over the past year, meaning monthly payments are much higher than they used to be. This has made it difficult for potential buyers to qualify for loans and only allows them to purchase homes that cost a fraction of what they could this time last year.
Despite demand, people are buying fewer homes
The combination of high home prices and increasing mortgage rates has some buyers abandoning their home search for now. Reports indicate that home sales are slumping, with the National Association of Realtors reporting a dramatic 19.9% drop in September 2022 compared to previous months.
Is the House Market Bubble About to Pop?
Is America currently in the throes of a housing boom—and is it on the brink of collapse?
That dreaded question has now become the primary concern of buyers, sellers, and homeowners. Countless first-time purchasers are concluding that a substantial price downturn might be the only way for them to get into homeownership in this wildly inflated market. A large-scale change could mean that prices go down. This could be an excellent opportunity to buy a home.
Homeowners who recently bought at the top of the market are now dreading a potential decrease in property values, which would drastically decrease their equity and tank their investments. It’s an owner’s worst fear that comes to life.
Is the housing market about to pop? It depends on how you define a bubble and the pop.
The best answer: as the housing market readjusts, it isn’t easy to know just how extreme this transition will be. However, an abundance of factors – including mortgage rates – can influence the extent and duration of this downturn.
What’s the Future Trends for Real Estate
It’s essential to remain aware of potential changes within the next one and a half to two years, including the following:
- Migratory patterns
- The Sun Belt
- Supply and demand
Migration from cities to suburbs
The recent COVID-19 pandemic instigated an influx of people migrating from bustling metropolises to the rural outskirts.
With the financial instability many face, relocation is becoming an increasingly necessary option for those who can no longer cover big city prices. On the other hand, more affluent individuals are voluntarily moving to gain access to additional amenities and comforts. As a result, people with limited resources have been forced to look elsewhere for affordable accommodation.
Ultimately, the suburbs are desirable due to advantageous tax rates and cost-effective homes and rentals.
People prefer the Sun Belt
The Sun Belt is a vast region of the United States, spanning from California to North Carolina and taking in eighteen southern states along its course.
The pandemic has only emphasized the growing popularity of moving to the Sun Belt region among Americans, and this trend is likely to continue in the years ahead. Not just retirees find the area appealing; younger professionals are also flocking to it due to its low taxes and accessible housing prices. In addition, rent is surprisingly affordable in comparison with other places.
Supply and demand
Permits for future residential construction have plummeted to the lowest level recorded since June 2020. With mortgage rates steadily above 6 percent and some homeowners benefitting from a locked-in rate of 3 percent or lower, fewer individuals will be eager to transfer or offer their houses on the market.
Home prices are expected to decrease in most markets during the 4th quarter due to discounts and newly put-up houses at lowered rates.
Although the real estate market was less active than it was in the spring, accurately priced homes continue to be sold. To avoid sitting with a property for an extended period, sellers should seriously contemplate making modest concessions.
Another option is to sell your home as-is to avoid the hassle and expense of making concessions to an onerous buyer.
Conclusion
Are you considering selling your home? After the record-breaking appreciation in value last year, this is a question many homeowners are asking themselves.
There are a few factors to consider, from continuous buyer demand to the scarcity of available homes. Furthermore, mortgage rates have been trending upward and show no sign of slowing anytime soon in 2023.
As mortgage interest rates continue increasing daily, many first-time buyers may look elsewhere for their next purchase. Waiting until 2023 could mean feeling pressure from reduced affordability caused by escalating interest rates.
With the overwhelming competition for housing, buying a home is more complex than ever. There are fewer options and higher prices due to quick sales in what can be considered a seller’s market. This makes it an even more strenuous process for first-time buyers who must compete with numerous other interested purchasers to secure a home.
Even though current equity levels are at historic highs, sellers are increasingly hesitant to enter today’s market as they would also need a home to buy. With interest rates more than doubling within the past year, it is becoming harder for sellers to trade up without incurring higher monthly housing costs.
