Should I sell my house now or wait until 2023? It is a big decision. This is a financial and personal decision that considers many factors. One of the big challenges for home sellers is the cooling housing market amid rising inventories and interest rates. A record number of sellers lowered list prices in his four weeks to June 12, according to Redfin data.
Top Reasons To Sell Your Home Now
Home prices in your area are rising
Should I sell my house now or wait until 2023? Well, A market with rapidly rising home prices indicates strong buyer demand. When the seller’s market is strong, homes often sell for well above the asking price. Dwellings Michigan co-broker Boyd Rudy shares more insights.
He says,”If prices in your area are steadily rising, you might sell and get a top dollar home.” The seller’s market is usually flooded with cash buyers who can complete the transaction quickly (10-20 days) and forgo contingencies such as home inspections and appraisals.
Home inventory levels are still low
The number of homes you sell is another important factor in determining if it’s the right time to sell in the current housing market. Areas with low inventory levels mean more buyers are competing for fewer homes, keeping home prices high. However, the market is beginning to shift in favor of buyers. Total housing stock in May 2022 hit the highest level since October 2021, according to the National Association of Realtors (NAR).
Homes are selling at a fast pace
According to the NAR, it took just 16 days for the home seller to receive and accept her May 2022 offer, and 88% of her homes sold in May had been on the market since her sale. was less than a month old.
However, real estate is local and it may take some time to sell your home on the market. So, should I sell my house or wait until 2023? It is probably worthwhile to wait until next year. It’s recommended contacting your local real estate agent to get a better idea of how long it will take to sell in the current market.
Top Reasons To Sell Your Home In 2023 And Beyond
Probably you’re required to pay capital gains tax.
If you bought your home less than two years ago and your property value has increased significantly, you’ll have to pay at least some home sales tax. If you wait until at least two years have passed since your purchase, you may be able to pay less tax or pay no tax at all, assuming you meet certain IRS requirements.
You can’t move
Even if your home is on the seller’s market, you may not be in the financial position to buy a new home. Mortgage interest rates skyrocketed in 2022. Higher mortgage interest rates mean higher monthly payments for the same loan amount. US home prices have also increased 19.8% over the past year, with the median home price now at $354,165.
Depending on your desired house for the rent market, you may not be able to make a high enough down payment to buy a new home even though it’s on sale. You can reduce your mortgage by 20%. However, lenders may require the purchase of mortgage insurance (PMI) to cover the increased risk to the mortgage lender.