There have been interesting shifts in the housing market over the last several months. Although inventory remains low, available homes have increased. Mortgage rates have gone up. Buyer’s money doesn’t go as far and they are pickier about what they buy. We’ve seen price reductions and homes sitting on the market for (what!!) over a month. With all of these changes, sellers may wonder if they should still sell their home.
First, the “slowdown” works to your advantage. In the last year it was almost impossible to buy a home contingent on selling yours. Home sellers were forced to find less than ideal solutions, such as temporary housing, rent backs, or short term financing. There is more opportunity now to find a replacement home with less pressure. There are more homes available, and there is more chance of getting your offer accepted with a home sale contingency.
Second, even though the inventory of homes has increased, we are still in a seller’s market. According to the National Association of Realtors, in July 2022 there was only a 3.3 month supply of homes. Anything less than six months is a seller’s market and keeps buyer demand high. There are still many buyers looking for the perfect home, which could be your home. This does mean your home needs to be priced right and in good repair.
Third, your home value has appreciated in bounds over the last two years, up 18% in 2021 alone. This means you have a large amount of equity that you can use toward your replacement home. This puts you in a position to use your equity for several options when you sell – upgrade, downsize, invest, save, etc.
The housing market is shifting, but it is allowing sellers a great opportunity to capitalize on their equity. Home values remain high, buyer demand is strong, and buying a replacement home has become simpler.