Should You Sell Your Home Now Or Wait?

With so much negative media publicity about our economic slowdown, the question is: Should you sell your home now or wait?

We’ll explore the current escalating mortgage rates and sinking economy to answer this question.

 

KEY TAKEAWAYS

• Find out the advantages of waiting to sell your home or selling now.
• Learn about how our current economic crisis and higher mortgage rates can provide you with opportunities to sell now and make an offer on your next home contingent on selling your current home.
• Find out how selling now lets you use your home’s equity to make a higher down payment on your next home that offsets higher mortgage rates.
• Find your next home now and make an offer contingent on selling your current home. The current housing market slowdown may make your offer appealing to the seller.

 

Wondering Should You Sell Your Home Now or Wait?

 

According to a recent US News Real Estate article, “the answer is: maybe”.

Currently, the U.S. housing market drastically changed from the beginning of 2022. Rising inflation caused the Federal Reserve to increase interest rates to 14-year highs. Freddie Mac reports mortgage rates around 7% making homebuyers pay higher monthly mortgage payments.

These events are making many buyers step back to figure out of they can afford a new home now.

Yet, some advantages exist if you decide to put your home up for sale now. For instance, scared homeowners are not selling creating a low inventory with less competition for current sellers. Homes can sell faster when the inventory is low.

Of course, you can wait to see how inflation and interest rates play out with the housing market.

Tip: An important fact to remember in deciding to sell your home now or wait until 2023 “is both a financial and a personal decision with many factors to consider”.

Let’s explore the reasons for selling now or for waiting until 2023.

 

3 Reasons Why You Shouldn’t Sell Your Home Now

 

The following three reasons not to sell now depend upon recent events.

 

1. Wait to Sell Because You Just Bought or Refinanced

Recently bought or refinanced your home means you are on a fixed-rate long-term mortgage that you locked into lower monthly payments before rates rose.

Before 2022, many homeowners locked into mortgage rates below 3%. Selling now to move and buy a new home means paying more than double those rates. Unless you must move for a better-paying job that offsets the extra monthly payments. Otherwise, you might as well not sell to keep your low mortgage payments.

October 2022 mortgage rates hover around 7% on a 30-year fixed rate. For the first time since 2002 rates reached that high.

Yet, the Mortgage News Daily recently reported fluctuation caused the rate to dip to 6.8%. Even so, the up-and-down mortgage rates worry home buyers and sellers.

 

2. Wait to Sell Because You’re Afraid You Can’t Afford Your Next Home

Home purchase affordability worries many buyers. Recent double mortgage rates over last year and early 2022 scare buyers.

Currently, there seem few financial benefits to buying a new home. Thus, potential sellers worry about the affordability of a new home if they sell now. Can you find a new home that fits your budget?

Also, the current reality means lowering the selling price to become competitive. That leaves less equity to use on their next home purchase.

Solution: You can always make an offer on the perfect new home contingent on selling your home. With a slow housing market, the seller may agree if you don’t take too long to sell your home.

 

3. Wait to Sell Because You May Not Find a New Home

If sellers are holding back and not listing homes for sale the low housing inventory won’t sell fast. In a hot housing market, low inventory with high demand sells quickly and at a higher price. Yet, low inventory in a cool market may sit unsold for a long time.

Thus, waiting for the market to get hot again makes sense.

Solution: Like the situation above, shop for your new home now. If you find the right one, make an offer contingent on selling your home.

Got Questions?

 

Let’s look at the three reasons to sell now.

 

1. Sell in 2022 Because You Are Not Afraid of a High-Interest Rate

 

As 2022 comes to a close, mortgage interest rates are higher than they were many years ago. While this scared some homeowners into not selling, the high-interest rates don’t scare others.

Current sellers who owned their homes for many years have lots of equity which offsets the higher interest rate on their next home.

Tip: Higher equity when selling means you can pay a larger down payment which lowers the new mortgage monthly payments. This offsets the higher mortgage rates.

Rocket Mortgage recently pointed out that: “If your home’s value increased, you may consider cashing in on your home’s equity by selling”.

Tip: It pays to shop around with lenders because during high-interest rates they become competitive.

Many lenders will offer better terms to buyers with high credit scores and larger down payments. For example, some mortgage companies will allow you to lock into an interest rate and even relock if the rates go down.

 

2. Sell in 2022 Because You Can Wait for the Right Buyer

 

If you are not rushing to sell, you can list now and wait. Gone are the days last year (and earlier this year) when homes got multiple offers that created bidding wars among buyers.

The national housing market has not crashed. It just slowed down.

Tip: The current market is at a more leisurely pace with fewer offers. Good homes with high curb appeal and the potential to expand for growing families remain in demand.

 

3. Sell in 2022 Because You Must Move

 

It’s still possible to sell your home and find a new one if you need to move. For example, if you lost your job, you will worry about paying your current mortgage. In this case, selling now makes sense. You can always find a smaller home or one in a more affordable location that fits your budget.

Maybe it’s time to downsize if the children moved out and you don’t need the extra space. Or, are ready for retirement living? No place better than to retire in a warm beach community like San Diego.

Yet, others will opt for a life change requiring moving to another state with better opportunities to grow a family. Or, warmer year-round weather near beautiful beaches like San Diego.

 

Thinking of Relocating to San Diego?

 

Big Block Realty headquartered in San Diego, connects you with experienced Realtors who can help you find the right home anywhere in San Diego County. Whether you want to live on a beautiful beach, in a bustling urban setting, or in a ranch-style mountain home we can show you all that the greater San Diego area has to offer.

Contact us now to learn the variety of lifestyle living San Diego offers that meet your budget.

 

Should You Sell Your Home Now Or Wait? – Conclusion

 

We tried to answer the question “Should you sell your home now or wait?” in several ways. As we pointed out near the beginning, wanting to sell your home now or wait until 2023 is both a financial and a personal decision.

In all honesty, we provided you with three reasons for waiting or selling your home now.

The three reasons for waiting comes down to:

1. Because you recently bought or refinanced;
2. You’re afraid you can’t afford your next home; and
3. After selling you might not find a new home.

The three reasons for selling now include:

1. You are not afraid of high-interest rates;
2. You can wait for the right buyer; and
3. The situation requires your moving.

As you see, different situations and events may favor waiting to sell or selling now.

Read what Forbes and Bankrate recently predicted in our blog post:  “Is There A Housing Bubble?”.

 

If You Want to Sell Now in San Diego County

 

Big Block Realty will introduce you to a well-qualified, experienced Realtor to help you in several ways:

• Come up with the best listing price to attract buyers and profit;
• Market your home with ads, promotions, and open house events to reach a wider buyer’s pool;
• Negotiate with buyers to get you the highest price and best terms; and
• Guide you through the escrow closing process to achieve your goals in the quickest time.

 

Best in San Diego: Big Block Realty is recognized in 2022 as the Best Brokerage in San Diego for four straight years (2018 – 2021) by the LocalBest.com site.

Contact us today to get a Free Market Analysis of your home’s value in today’s San Diego housing market.

 

Steven Rich, MBA – Guest Blogger

 

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