Is now a good time to sell a home? It's a topic that many potential house sellers are pondering, especially following last year's rapid increase in home values. It might be tempting to delay the sale for an additional year or two but the majority of real estate experts think yes, this is a good time to sell your house. There are several causes for this, including persistent buyer demand and a lack of available homes. The mortgage rates are increasing in 2022 and show no indication of slowing in the near future.
Some first-time buyers may be compelled to leave the market if mortgage interest rates continue to rise. In other words, if you are considering whether to sell a house now or wait until 2023, it may be prudent to do so before interest rates close. The intense competition for housing results in fewer options, higher prices, and faster sales. In a seller's housing market, there are more interested buyers than available homes and that makes it a difficult time to buy a house, especially for first-time buyers.
According to the NAR, the national median price for existing homes sold in June was $416,000, up 13.4% from the same month in 2021. This is the longest streak of year-over-year growth ever recorded, spanning 124 months. Also, the price exceeded $400,000 for the second time. 88 percent of homes sold were on the market for less than one month and they typically remained on the market for 14 days, down from 16 days in May and 17 days in June 2021.
Fannie Mae released a nationwide housing survey in July 2022 that reveals that 68 percent of respondents believe it is a good time to sell a house.
The percentage of respondents who say it is a good time to sell a home decreased from 76% to 68%, while the percentage who say it’s a bad time to sell increased from 19% to 26%. As a result, the net share of those who say it is a good time to sell decreased 15 percentage points month over month.
Realtor.com’s stats for the week ending August 6 show that homes are taking longer to sell than they did at this time last year for a second consecutive week. In July, houses sat for 35 days, 2 days quicker than in July 2021. As the housing market shifts, consumers and sellers utilizing statistics to analyze real estate purchases should examine the time period such figures depict. The housing market is resetting in a buyer-friendly direction, but purchasers may still encounter financial issues.
The median house listing price was $449,000 in July, and weekly figures suggest a double-digit rise. Second quarter statistics indicated homeownership rates grew overall and for virtually every age and racial/ethnic group. A healthy labor market is boosting pay and allowing employees to negotiate remote or hybrid work arrangements, even as in-person employment becomes more frequent. With flexible work arrangements, house hunters might choose residences further from the office, in more cheap regions, or in a new, less expensive state to counteract cost-of-living hikes.
Is it a Good Time to Sell a House in 2022?
Spring and summer are traditionally the greatest seasons of the year to sell a home. Aside from seasonality, several reasons may make selling your house a good move. The reasons are frequently based on financial calculations, cost of living costs, and other criteria, but there may be additional circumstances that make selling your property the best option. A lack of housing availability raises demand and pricing for available homes.
Furthermore, when the housing supply is limited, homes on the market sell significantly faster. In June, homes spent four fewer days on the market than a year before, and the difference fell to only two days in July. As of August 6, homes are only staying on the market for three days longer than this time last year. More slowdown is likely as the housing market resets as buyers and sellers adjust to increased mortgage rates. Because of this, people who want to sell their homes should do it now instead of waiting until 2023.
In the first week of August 2022, new listings, a measure of sellers placing their houses on the market, were again 8% lower than one year earlier. This week represents the fifth consecutive week of year-over-year reductions in the number of new listings, indicating that fewer homeowners are ready to offer their homes for sale in this market that is rebalancing.
Many of the indications we monitor indicate that the housing correction has already begun, and sellers appear to have gotten the message. If sellers hesitate to enter the market due to a diminishing perception that now is a good time to sell, the housing market might be slowed, and it could take longer for equilibrium to recover. With home equity at a historic high, homeowners on the fence about selling should realize that they are likely in a good position.
Active inventory rose 28% from a year prior. This week's rate of progress slowed due to fewer new listings. Today's homebuyers have more options than in previous years. Realtor.com's July 2022 housing report shows that active listings are still 15% and 45% below 2020 levels. More active inventory may be needed to restore equilibrium, but the present trend may be in danger if homeowner sentiments regarding selling worsen.
Bottom Line: Don't Wait Until 2023 to Sell Your House
With persistent supply constraints and high buyer demand, now is an excellent time to sell your house. And with borrowing rates on the rise, it may be preferable to sell sooner rather than later; if rates go substantially more, prospective buyers may abandon their property search. But carefully evaluate your motives for selling.
If you're merely attempting to time the market and don't have a concrete plan for after you sell your house, it may be prudent to wait. Typically, rising mortgage rates result in fewer purchasers and a narrower pool of buyers able to give the price you desire. It costs money to sell a home, so if you cannot optimize your price, you may prefer to wait until 2023.
Find a good broker to sell your house now. A skilled real estate agent's assistance may be vital, especially in a hot housing market. Take the time to explore many possibilities and ask friends and family members to recommend agents with whom they have had positive experiences. Getting solid real estate agent referrals from individuals you know is another excellent alternative, provided you know people who have recently purchased or sold a house in your neighborhood.
According to NAR’s most recent Profile of Home Buyers and Sellers, 90 percent of sellers worked with an agent, and it’s easy to see why. NAR data shows that the typical home sold with the help of a real estate agent in 2021 went for $318,000, while homes without an agent on board went for $260,000. Agents have access to the multiple listing service (MLS), which organizes listings for real estate professionals and web portals like Zillow. An agent can assist distinguish between serious buyers and those who are just looking. You can buy your next house without a real estate agent no matter how you sell your present one.
References:
- https://www.fanniemae.com/
- https://www.bankrate.com/real-estate/should-i-sell-my-house-now-or-wait/
- https://www.realtor.com/research/weekly-housing-trends-view-data-week-aug-6-2022/
