Is Now a Good Time to Sell?

We have all witnessed the shift in the last couple of months as buyer demand slows and the number of homes for sale grows. But as a seller, there are still many benefits to listing your house for sale this fall.

For one, sellers become buyers, and with the growing supply of homes, you as a buyer will have more options for your own home search. Sellers have wondered where they will go if they do list their home. But with the rise in inventory comes the rise in opportunities for purchasing.

Also, the number of homes on the market is still low from a market perspective. To be in a balanced market where there would be enough homes available to meet buyer demand, there would need to be a six months’ supply of homes. According to a recent report from the National Association of Realtors (NAR), there is only a 3.3 months’ supply. A key factor in listing in this changing market is to price your home right. The buying frenzy of a few months ago has shifted, and with inventory higher, it is essential to price to be competitive. But overall, there are still inventory challenges, making it a sellers’ market.

Another factor that favors sellers is that their equity has grown by record amounts in the last decade. This equity can help to cover much of the down payment on your next purchase. In addition, interest rates seem to be settling and several key players predict that they will hover between 5-6% throughout 2022. Here is what the experts have to say about interest rates:

Mortgage Bankers Association (MBA):“Given the weaker outlook for growth, we continue to estimate a 50% likelihood of a mild recession over the next 12 months. If this materializes with a recession in the first half of 2023, the employment rate is expected to reach 5.5% by the end of 2023 and mortgage rates would fall around 30 basis points from the baseline forecast level [of 5.2%].”

National Association of Realtors (NAR) Chief Economist Lawrence Yun:“The peak in mortgage rates for this year may have already occurred in the middle of June at nearly 6%. There was an overshooting of rates at that time in an uncertain inflationary environment. Now, with gas prices steadily retreating, consumer price inflation may also have already peaked. That means the 30-year mortgage rate could settle down at around 5.5% for the remainder of the year.”

Realtor.com Chief Economist Danielle Hale:“For mortgage rates, we’re likely to see upward pressure with much less intensity. Mortgage rates are currently near 5.5%, and I expect them to hover between 5.5% and 6% between now and the end of 2022.”

Freddie Mac:“We forecast 30-year fixed rates to average 5% in 2022 and rise to 5.1% in 2023.”

From what these experts say, the fear of continued mortgage rate increases in the next few months is unwarranted. This is good news for both sellers and buyers.

The key for sellers in the current market is pricing. If you are looking to sell, work with your real estate agent to come up with a price that will win buyers’ attention. And know that when you go to purchase, you will be in a stronger buying position than this past summer.

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 18 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustinrealty.com