Should I Sell My House Now or Wait?
It’s important to know the current dynamics of the real estate market if you’re thinking about starting the process of selling your home. Although the volatility of the real estate market has eased since pandemic-related stressors, there are still many challenges.
Mortgage rates are one of the most notable examples. They have risen to levels not seen for more than 20-years. The average rate for a 30-year fixed-rate mortgage was 7.01 percent as of late March. This still-high mortgage rate makes payments more expensive, and it’s driving many potential buyers away.
The home prices are also very high. The national median sale price in February 2024 was $384,500. This is up 5.7 percent from last year and not far off the National Association of Realtors highest monthly median of $413,800 recorded in June 2022. High prices can be good for sellers but they require buyers to afford the home purchase. The high interest rates make this difficult. With housing inventory at just 2.9 months, it is still a buyer’s market, regardless of the pricing trends.
If you waited to sell your home last year, it may have been a wise decision. ATTOM Data Solutions U.S. Home Sales Report reveals that while home prices rose last year, it was at a slower pace than in the past decade.
Is it a good idea to sell your home now, with all the mixed signals? These insights will help you answer the question.
Should I sell my house now?
Before putting your house on the market, you should ask yourself a number of important questions, both financially and in terms of lifestyle. According to popular opinion, it may be a good idea to sell your home despite the changing market. According to Fannie Mae’s February 2024 Home Purchase Sentiment Index about two thirds of respondents — or 65 percent — believe it’s a good time for sellers.
Local market dynamics can also have a big impact on whether or not it is a good time to sell. While some markets are booming, others may remain stagnant. Severance says that in some places, it’s a good idea to sell now because prices are still rising. In other markets, you might want to wait until the interest rates drop and remain low, as this will encourage sales.
The markets where prices are declining tend to be those that have seen a dramatic rise in the past few years. According to Redfin, the median price in Austin has declined year-over-year.
When is the best time to sell your house?
Spring and summer have historically been the best times to sell your house. However, beyond seasonality there are other factors that could make it a good decision. The reasons for selling your house are often based on factors such as costs of living and other considerations. However, there may be other factors. They include:
When rates are low
Low interest rates encourage more buyers to enter the marketplace, which is beneficial for sellers. Bidding wars are often triggered by an increased number of home buyers, which can lead to higher home prices.
When supply is low
The current housing shortage also increases demand for homes and their prices. When housing inventory is low, houses on the market are more likely to sell quickly.
You’re ready to downsize
It may be more cost-effective to downsize than maintain a large, expensive home. Downsizing is a must for older homeowners.
You may need to relocate
Selling may be necessary if you are moving to a different state to take up a job, or if you want to retire in a new place and need to use the proceeds from the sale for your next home. Severance says that the time to sell your home is when you have to. It’s a simple decision to sell your home if you are moving.
When should you wait to sell your house?
There are several common reasons why prospective home sellers may hesitate to list their property for sale.
Rates are on the rise
A smaller pool of buyers can often afford your price because mortgage rates are rising. Selling your home is not free. If you cannot maximize the price of your house, you may want to wait.
You may have recently refinanced
It may not be a good idea to sell your home if you have recently refinanced. When you consider the closing costs, and other fees that are typically paid during the refinancing procedure, it may be a bad idea to sell.
If you’re upsizing
In a booming market, the cost of a larger home could be prohibitive. Do not overspend. Take the time to make sure that your finances will allow you to buy the home of your dreams.
Your home may be in bad condition
You have a list of home repairs that need to be done. It may be worth delaying the sale until you can complete some repairs. To get the best offer, you need to present your house in the best possible light. You are less likely to get a high price if the house is in disrepair, or if there is unfinished work.
You have no plan if you don’t know what to do
It may be better to wait if you are simply timing the market in order to make a profit, and do not have a plan for what to do after your house is sold. It doesn’t make any sense to sell your home if you have no idea what the next step is. “Where are you going?” What will you do with that money? You shouldn’t sell if you don’t plan.”
What happens if the economy is in recession?
According to some experts, the U.S. has a 45-percent chance of experiencing a recession before the end of 2024. It’s not a certainty, but it is worth asking: should you consider selling your home during a downturn? Or just before one?
Answers really depend on your individual circumstances. If you are worried about a possible recession, it is better to sell your home now than wait. Selling during a downturn can be advantageous if you are looking to rent or downsize. You could reduce your costs and put the proceeds in a retirement fund, invest, or go on vacation.
Remember that recessions are often accompanied by job losses and a general tightening of the belt, which can limit the number house hunters looking to purchase. Before a recession, more buyers can afford to buy a house and qualify for a loan.
Bottom line
Selling your home is a big decision. You should consider your future goals and plans, your financial situation and the reality of your local market. Working with a real estate agent who has experience is a wise move if you plan to list your home. An agent who is familiar with the local market can help you set a price for your home that will maximize its chances of being sold quickly and smoothly.
FAQs about selling your house
When is a good time for selling a home?
The decision to sell or not depends on the dynamics of your local market and your own personal situation. It all depends on the market you’re in. Interest rates are rising, which is causing some markets’ prices to drop, while in other places, prices continue to rise. Geographically, it all depends. If you’re looking to sell, an agent who knows the local market can help you.
What is the most difficult month to sell a home?
Spring and summer are usually considered the best time to sell. This is when buyers are most active and there are the most new listings on the market. Winter is the worst time to sell, as bad weather prevents people from driving and they are preoccupied with holiday plans. The months of December, January, and February tend to be the most difficult for sellers. However, activity increases in the spring.
Should I sell now before a recession hits?
Recessions can lead to tightening of belts and possible layoffs. If you live in an area that has been hard hit by job loss, there will be a limited number of buyers who are qualified to buy your home. It might be advisable to sell now before this (potentially) happens.
When I sell my home, do I have to pay tax?
Capital gain taxes may apply if you sell your home for a large amount. You’ll be charged a different tax rate depending on a number of factors. These include how much profit you made, how long you owned the house, and your marital situation. In addition, you’ll have to pay for any property taxes that are still due at the time of selling. Many states also charge a transfer tax.
