If you are thinking about selling your home, you may be worried about whether it's the right time to sell. Though selling is largely a personal decision, there are some current conditions that make now a good time to sell if you are ready.
What do interest rates look like in today's market?
Interest rates are on the way up
The rate on a 30-year mortgage has climbed more than one percentage point in the past year, and most predictions say rates are likely to keep climbing. However, on a historical basis, rates are still near all-time lows.
By selling now, you take advantage of still-low rates that will allow buyers to be able to pay higher prices. If you are buying another home, you will also take advantage of the low rates to save money on your mortgage payment.
Are home prices on the rise or fall in today's market?
Prices are on the rise
Home prices have been on the rise, but they are nowhere near their peak. That makes this a perfect time to sell your home if you are planning to buy another one.
By selling now, you take advantage of the price gain over the past couple of years, but you can still buy another house without buying at the top of the market. As long as you have owned your house long enough that you are making a profit on it, this is a good strategy.
What does the real estate inventory look like?
Inventories are tight
Demand for housing and a better economy have certainly helped push up home prices. However, another factor has been tight inventory. The number of homes going on the market has not kept up with demand, leading to a lower-than-normal number of homes for sale.
This makes it a good time to sell your home because there are fewer choices for buyers, which means you can sell your home faster and for a higher price than if there were more homes for sale.
Is new construction popular?
New construction is coming back
One part of the housing market that has been slow to recover is the new construction market. Nevertheless, it is starting to come back strong this year. In November, housing starts nationally were at their highest level in nearly six years.
More new housing means more competition, which is why now is a great time to sell your home. The more new houses on the market, the harder it will be to sell your home, especially if it is an older home that needs some updating.
Why sell now?
A chance to build equity
The faster you get into your new home, the quicker you will build equity. If you wait to sell your home and prices or interest rates increase further, you will pay more for a home, which will cut into the amount of potential price appreciation.
