Selling a home is not an easy decision to make. But if you have considered selling, you might be thinking if now is the ideal time. Here are some factors you may want to consider in your decision making process
- Interest Rates
When selling a home, the current interest rate market is a major factor to consider. Lower interest rates drive down mortgage payments and inflate assets or home values in this scenario. Home sales in the last few years have gone up considerably because of low interest rates coupled with strong buyer demand. But, as we approach the peak 2022 buying season this summer, we are shifting to a more normal market and many economists largely attribute the drop in consumer demand because of the sharp rise in interest rates. Interest rates have gone up significantly. The continued rise in rates will likely cause a pull back .
Often times supply and interest rates are directly correlated. When interest rates rise, buyer demand drops and a spike in supply can happen. The drop in buyer demand will often also create downward pressure on home values. Hence, while the market is still a seller’s market, if you are in the market to sell soon, many would say now is the time………… before the market shifts back to a more neutral and/or stable market.
3. Increased home value
The recent wave of low interest rates in the past decade spurred a lot demand in the housing market and increased values significantly. As such, you might want to consider selling and cashing in on your home’s equity while homes are still in high demand and values are at what many believe to be a peak. As the numbers shift to a more stable market and the demand decreases, the value of your home will likely drop. Many people believe now is an ideal time to sell your home.
4. Personal Reasons
While all of these factors are relevant, the market is unpredictable and global events such as those in Ukraine can affect our markets here back home. We recommend that buyers and sellers should weigh the economic, political, local market and most importantly your personal situation when deciding when to sell. We think there could be a better time to sell a home but each scenario is unique.
At Cash for My Home Now, we offer sellers the opportunity to make selling your home a hassle free experience if and when the time is right. Please call us if you are in the market to sell and are interested in an all cash offer.