One of the reasons or excuses as to why home prices shot up so much over the last two years is because of the lack of inventory. While inventory was low, homeowners took advantage, putting their house on the market and trying their luck. Many of these homeowners were able to get the deals they wanted but some missed their mark and are still waiting for a buyer to step in. If you are debating on selling your home right now, you have to be aware of the market and what condition it is in. This will have as big of an influence as anything else because it will indicate whether or not you have a good chance of getting fair value.
Before you set any expectations as to what will happen if you list your property, you need to understand that your situation is different than others. Why? Because everyone has their own reasons for wanting to sell, advantages and disadvantages with the property, and more. If you are not sure about your options, speak with a realtor because they can tell you what the local markets are going through and help you set a plan that will be realistic as well as promising.
Where Is The Real Estate Market Right Now For Sellers?
Sellers are having a tough time right now because buyers literally cannot afford to borrow the money to get a home. Even with prices skyrocketing the last couple of years, buyers were not being turned away because the cost to borrow the money was so cheap. By raising rates, many feel that the market is not only slowing down but is set for a bit of a drop, especially in prices. However, no one can be certain because it also depends on inventory, the job market, and hundreds of other factors that will influence the prices and market in the future.
While the market may not be ideal for sellers, you should still look around and see what’s out there. While most buyers or potential buyers are unable to borrow money, there are buyers out there who can swing deals like this without having to worry about taking out loans. Because of that, you may still be able to find a reliable buyer and get a great price on your property.
What Is Influencing Your Home Selling Decisions?
Before you can make a decision on what you want to and should do, you should always take into consideration your situation as well as where the market is right now. How much do you owe on the property? How much would you want to sell it for? How much is it worth in a strong market, especially compared to other homes in the neighborhood? What is your income situation like and is your job recession-proof?
You can see why these questions are important to ask and how much of an impact each one can have on your decision whether to sell or not. If you are planning on staying in the area, owe little on your home, have a low-interest rate on your loan and your job is steady, you may want to wait. However, that same scenario for someone else could be the main motivator for them to sell as well because they can take the profits and rent an apartment as they wait for the market to adjust. The problem with that idea is that it could take years for the market to adjust, so you need to always be aware of the fact that just because you are hoping for the market to do something doesn’t mean it will.
2023 Outlook
As we get closer to 2023 we start to see signs of what the markets might be like in the New Year. Most are expecting the first quarter of 2023 to be similar to the last quarter of 2022, unfortunately, just without the same number of big shopping days. That means markets could change quickly and if the interest rates are still high, it doesn’t necessarily mean you are going to find buyers just because you drop your price.
While interest rates may remain high during the year, that does not mean that home prices will fall. While they may dip, many are certain that values will stay up within reason to what they’ve been in the last couple of years. Most areas will only see a drop in prices potentially of 25% max but those numbers should rebound quickly, especially if rates are lowered and borrowing is allowed to pick back up.
What Realtors Recommend
It’s always smart to discuss your situation with an experienced realtor to determine what your best options are and how to move forward in the current market. However, realtors are remaining optimistic about the new year, especially when it comes to sellers. Because inventory remains low, home prices are not going down as quickly as some would have expected. While this may mean that rates remain high, it also means that the value of the property should remain high as well and that’s what brings us back to the buyer.
Realtors can work with buyers whether it’s figuring out a way to lower the interest rate costs the first couple of years or working with programs established to help buyers like veterans. There are options out there to help people who cannot deal with high rates to be able to affordably purchase a home. These options, which there are literally several of, open the doors for buyers in this type of market where they can borrow money cheaper than anyone else which gives them first rights to make an offer on a property they want.
If you need to sell your home, regardless of where the market is at, then you need to focus on how to make your house the one the buyers want. Work with your realtor on ways to improve your prospects, showcase your home the right way, increase your number of potential buyers and also maximize the value of your home. Their experience can save you time and money while also helping you to land the perfect buyer for your house.
