Wednesday, August 10, 2022 / by Brian Armstrong
Should You Wait to Sell Your Home in 2023?
Should You Wait Until 2023 to Sell Your Home?
Considering selling your home, but not sure if now is the right time? The real estate market is still complicated, so we understand why you are questioning the timing of your sale! Your home is a valuable asset, and you don't just want to sell; you want to maximize the value of your sale. So, let's look at where things stand as we approach the end of 2022!
Consumer confidence measures how people in the US feel about the current market. Right now, buyer and seller confidence in the nation has been falling as inflation and mortgage rates rise, as told in a recent report by Fanny Mae. Housing confidence has not been this low since 2011, indicating significant economic challenges in today's real estate market. "Surveyed consumers continue to express pessimism about home buying conditions, with only 17% of respondents reporting it's a good time to buy a home," according to Fannie Mae's report. "Meanwhile, the percentage of consumers believing it's a good time to sell has begun ticking downward in recent months, falling from 76% in May to 67% in July."
Silver Linings Amidst Chaos
The recent report on confidence paints a bleak picture of what's to come of the US housing market in the short run, but not all is lost. Housing is a basic necessity and always in demand, even when times are tough. Here are a few opportunities you have as a homeowner to maximize the profit of your home sale in today's economy.
Inventory Is Still Low
One of the best opportunities to sell your home is when competition is low. While others hold off until the market is more stable, you can take advantage of low inventory in the market. While demand for homes may be down, the remaining buyers only have so many homes to choose from, helping your property stand out! In addition, you have some negotiation advantages as potential buyers will not have as many comparable properties to purchase. If you decide to wait until things stabilize to list your home, you may find an increase in similar homes that will draw buyers away from your property.
Prices Are Still High
Pricing for real estate is typically heavily tied to the inventory of homes on the market. In a perfect world, the more houses there are for sale, the lower the prices and vice versa. This simplification doesn't work in a real-world application as many factors affect pricing, but it gives us a glimpse into why home values are still trending high.
Resilience to the Economy
Inflation reached over 9% in June, which has changed Americans are spending their savings. While many Americans struggle with the rise of goods like food and gas, others are more resilient to these price hikes. Buyers in the upper-income groups are not as constrained by mortgage rates and inflation, leaving them still in the market for housing and investment properties. We have also seen an influx of out-of-state buyers moving into Vermont, so there are still opportunities for you to have a successful sale.
Need help maximizing the profit of your home sale in a complex market?
Our team is here to help you navigate through the process and help you achieve your goals! Give us a call at (802) 735-2167 or email us at email@example.com