Is It a Good Time to Sell a House?
If you’re asking, “Is it a good time to sell a house?”, the answer is yes. It’s 2023 and the Spring market is full of equity, high sales prices, and competing offers. The reason for this is limited inventory; not a lot of people are putting their homes on the market. So, if you decide to be one of the few homeowners who list their house, buyers will be flocking right on over.
In this article, we are diving into each facet of the question, “Is it a good time to sell a house?” We’ll talk about the advantages to sellers in the 2023 Spring market, the situation for buyers, and the possible misconception that real estate headlines have handed over to us.
Why Sell Your House Now?
To say inventory is “limited” might be an understatement. At the end of 2022, when mortgage interest rates began to rise, fewer and fewer homeowners were moving forward with placing their houses on the market. Naturally, people figure that if the cost of a mortgage loan is going up, it’s not a good time to sell a house. But, the thing is, there are still plenty of people out there looking to buy (we’ll expand on that below), who will pay what they need to in order to secure a home. That leaves the few sellers on the market in an advantageous position.
What sellers in the 2023 Spring season can expect are to cash in on a good amount of equity, leaving them more money to put toward their next house, to sell their home quickly, and to have multiple offers to choose from. Those are some pretty big wins that will point you toward now being a good time to sell a house.
Buyers Want to Buy
Rent increases, the price of new construction homes, and the limited inventory circumstance described above are all reasons why buyers are interested in your home.
With inflation comes the kind of rent increases that make homeownership a much more attractive option. Rents have been rising since COVID and are not slowing down anytime soon. So, at this point, the rent vs. buy argument leans toward the latter in most situations, even with elevated home prices. Additionally, new construction homes are out of the question for many. The estimated median new construction home price in 2023 is a whopping $461,000. Rent increases and new construction prices are leaving buyers sifting through the limited inventory of homes in an attempt to make their housing dollars go further.
“I thought I heard home prices were falling.”
According to some real estate headlines in the post-COVID era, everything is terrible and nothing is going right. At least, that’s what they make it seem like. Here’s another way to look at it… The real estate market of 2020-2022 was an unprecedented, record-breaking whirlwind. By mid-2022, things were leveling back down. (As they are supposed to). So, it’s not that these are terrible times, it’s just getting back to normal.
Home prices are generally not falling, rather, they aren’t rising exponentially as they did in 2020-2022. The expected median home price in 2023 is a healthy $380,100. This is less than 2% lower than last year, despite the perceived disparity between this year and last. Accepted offers have been increasing since December and average home prices climbed from January to February. These numbers will likely stay high, if not grow, through the Spring.
Now is a Good Time to Sell
It is a good time to sell a house. Sellers are getting a lot, buyers are eager, and the market is in a good spot. If you’re thinking about selling and buying your next home, contact United Home Loans to assemble your real estate team. Or start with a guaranteed pre-approval!
Tracey, M. (27 Feb 2023). Home sales rebound as lower mortgage rates draw buyers. Realtor Magazine. https://www.nar.realtor/magazine/real-estate-news/home-sales-rebound-as-lower-mortgage-rates-draw-buyers
(6 March 2023). We will look back at Q4 as the bottom for the housing market, says Compass CEO Robert Reffkin. CNBC. https://www.cnbc.com/video/2023/03/06/we-will-look-back-at-q4-as-the-bottom-for-housing-market-says-compass-ceo-robert-reffkin.html