Thinking about selling your home next year? People are not sure whether they can get good value for their properties this year because of inflated rates and a job market that is beginning to sag. If you are thinking about waiting until next year to decide whether or not to sell your home, you are not wrong to be cautious. However, you do want to utilize this time to benefit yourself, especially if you do sell in 2024.
Before you decide to sell, it’s important to look at where the real estate market is and where people expect it to go. Right now, prices are not going up because of interest rates which have slowed buying down. However, home values are still strong and that’s expected to remain through next year. If you are not sure what your best options are, consulting with a realtor is always a smart idea.
Why You Should Sell Your House In 2024
The decision whether or not to sell your home will obviously not be made until next year. However, if you are investing the time now into learning what your options are and how to be best prepared, here are some things to consider. These options will give you more reason to sell, but speaking to a realtor is still the smart way to begin.
- Possibly lower interest rates: Interest rates went up to slow down inflation and cool markets that were just too hot for their own good. The results have worked and many believe that rates will finally go down next year giving buyers another opportunity to get a home and be able to cover the mortgage.
- Strong value: The value of your home has gone up considerably over the last two years. Now you are thinking of cashing out but waiting could cost you more money. Yes, home prices may dip during the next twelve months but that does not mean they will plummet. Expect home prices and values to stay strong.
- Better buyer options: In 2024 the buyers who are going to contact you are going to be ready to buy. Most people who do not take a property seriously are easily pushed aside because the demand for each property is too high, meaning you are working with a far better and more qualified pool of buyers. These buyers will have 20% down, plenty of income and a strong credit score.
- Desperate lenders: Mortgage applications have slowed down significantly and that means that lenders will be doing everything they can next year to get buyers in the door. More competitive lenders means a more competitive buyers market which is great if you have a house to sell. While the market and these prices need to cool, lenders are not able to take advantage of the higher rates meaning that the majority of their current clients are paying less than 4% on their mortgage. Yes, that’s still a good profit margin for a lender but if they are not giving out new mortgages, their business becomes stagnant. Expect more aggressive lending options to get buyers motivated again.
- High demand: Inventory remains low and at the same time, the cost to buy a $500,000 home is almost comparable to renting an apartment. Because of that discrepancy, buyers are still highly motivated to buy, especially if they find a good deal.
- Investor demand: The secret is out on how to make money in real estate. The trick is that you have to be able to own property meaning those who have an interest in investing are going to be focused on grabbing properties, not just getting the best possible deal for themselves. Even condos are in high demand, especially if the association is fine with new owners renting out the property.
- Inventory issues: Because of questions in the job market, those who have low-interest rates on their mortgages, which is still the majority of homeowners, may sit back and wait. Why sell an affordable home if it’s only going to double or triple your monthly expenses? Inventory will remain low which will keep your value higher.
- Cost is not key for buyers: Again, buyers are not as much focused on the deal they can get as they are getting the property. Because of investment advantages and options like AirBnb, property owners can easily turn a profit on a new property, weeks after they close on it. This and other options have motivated buyers to save up for their next investment property and they will go for one as soon as the interest rates are lowered a bit.
- More time to renovate: If you are thinking of selling in 2024, now may be the time to start on your renovations. Improving the lawn, getting a new coat of paint or even updating the roof can make a big difference in not only getting more interest in the property, but also getting better offers. Take some time to look at what your property needs in order to raise its value and determine, based on the time you have, the finances you have and the work that’s needed, whether or not you should invest more into the property.
- Relocation increase: It is now easier than ever to get a job in another city and while the labor market is having issues, there are still plenty of jobs out there, especially for skilled workers. If your area has an affordable cost of living and also has a strong job market, do not be surprised if thousands of people from other towns have a serious interest in your property, especially if it’s a great location and in great shape.
Selling your home in 2024 may not be something that is on your agenda right now, but it is still a conversation worth having. There are dozens of reasons why you should and should not sell your property. However, if you want to know what your best options are going to be, you need to discuss them with an experienced realtor. Not only do they offer free consultations, but they will be happy to review the property and give you their opinion on what needs to be done, when to sell and what your options are as far as listing price. Having experienced guidance throughout this process is ideal, especially if you have never sold a house before.