What sellers should consider when deciding to sell their homes.
People often ask, “Jason, should I put my home on the market right away, or should I hold out for a more favorable market next year?” The truth is, predicting the real estate market’s future can be challenging. However, I can tell you that, as of now, it’s a good market.
Homes are selling well, and prices remain relatively stable. We’re not witnessing substantial drops in home values. Nevertheless, there’s a significant factor to consider—rising interest rates. As we approach 2024, the prospect of higher mortgage rates is looming. Some experts are even discussing rates crossing the 8% mark.
When mortgage rates surge, the pool of potential homebuyers dwindles. If that number drops too low, it can tip the scale toward a buyer’s market. In a buyer’s market, there are more homes for sale than there are buyers to snatch them up. Consequently, this puts downward pressure on prices, and the market slows down.
So, when someone asks me whether they should wait for a potentially better price, it’s a challenging call. While there’s always hope for a more favorable market, there’s also an element of risk in waiting too long.
My advice? If the market is robust right now, it might be wise to seize the opportunity. There’s no guarantee that the market will be more favorable next year. I vividly recall the real estate peak in 2006 when prices were soaring. Some individuals held off, anticipating even higher prices. However, come March 2007, the subprime crisis hit, causing a significant downturn in home prices.
Now, I’m not suggesting we’re facing a subprime crisis, but unexpected events can alter the course of the market. Unforeseen circumstances, such as stock market crashes or major national events like 9/11 or the onset of COVID-19, can reshape the market landscape. When you’re betting on the future, it’s a gamble with uncertain odds.
My recommendation? If the market is strong right now, don’t gamble on an uncertain future. Additionally, selling your home in the fourth quarter during the holidays can be advantageous. Motivated buyers emerge in this period, often needing to secure a home before the new year begins.
This season can be an ideal time to list your home. If you have any questions or need guidance, don’t hesitate to reach out to me. You can call or send a text to 602-738-9943. Your real estate needs are my priority.