How to Determine if Now is the Time to Buy or Sell your Home

In 2021, housing market experts predicted that 2022 will be a year of rising home prices and continued high demand: this has since proved true. 2021 was riddled with many buyers; however, few homes were on the market. This 2022, buyers are still interested in purchasing homes; however, the low supply of homes on the market is driving price increases. As a result, the housing market remains a seller’s market that favors homeowners who are selling now.

This article outlines the reasons you should buy or sell your house in 2022. Read on to find out why a home purchase or a home sale at this time is ideal.

When Should I Sell My House?

Many homeowners believe that market conditions should determine when to sell a house. That is not entirely true. While you should look at market conditions before you sell your house, you should pay greater attention to your personal situation. That means the best time to sell your house is when your life circumstances align with the market.

Well, it can be difficult to know when that is, so here are a few signs you should sell your house:

You Have Enough Equity

If you have negative equity, you should not sell your home. That is called a short sale. For the past few years, home values have gone up, which only means that more and more homeowners are building equity. Now, their homes are worth much more than they owe on them and will continue to maintain their worth as home values continue to increase and they continue paying their mortgages.

To figure out how much equity you have, you need to:

1. Find your current mortgage balance by looking at your latest mortgage statement.

2. Know your home value. Many homeowners use figures from online valuation sites to determine the worth of their homes. While this is an easy process, it is not always accurate. We recommend asking a real estate agent to run a free CMA (Comparative Market Analysis) for an accurate estimate.

3. Subtract your mortgage balance from your home’s estimated market value. The difference will show you how much equity you have.

Before you sell your home, your equity should be enough to pay off your current mortgages, make a 20 percent down payment on your new home, and cover closing costs and moving expenses.

You Have Some Understanding of the Market

When you have some understanding of the market, you can predict what you might experience when you sell your home based on factors such as housing inventory.

If the number of homes for sale in your area has been going down, you may not have as much competition when your house goes on the market. As such, you can sell your home for more money. On the other hand, if housing inventory is going up, the added competition can make it difficult to sell your home.

An experienced real estate agent will know what is happening in your local market, and they will notify you when it is the perfect time to sell your home.

You are Ready to Capitalize on Buyer Demand

If you live in an area where bidding wars are common and home prices are rising fast, you are likely to see a lot of buyer activity, especially at entry-level prices, often purchased by first-time buyers.

The price range that is considered entry-level depends on the area in which you live; however, it is usually considered the lower third of home sale prices for an area.

You Can Afford to Purchase a Home that Meets Your Needs

Do you need a bigger home for your growing family? Or maybe all your children have moved out, and you are ready to size down. If any of these is the case, selling your home may be a valid option, and low inventory can help you sell your home faster, especially if your home falls under the entry-level price range. Selling your home will also help you pay cash for a smaller one, so you can pump money into your retirement fund.

You Can Pay Off Your Debt with the Money You Make From the Sale

Selling your home to get out of debt is a smart financial move. With the money you make from the sale, you should be able to pay off your consumer debt, including student loans, personal loans, and car loans. You should also have enough money left to pay for a new home.

You Have a Real Estate Agent

If you have decided to put your home on the market, you need to bear in mind that your real estate market and your financial situation are unique. A seasoned agent can help you figure out how the current housing market in your area is shaping so that you can decide whether a sale makes financial sense for you or your family.

Why Should You Sell Your Home?

Inventory has been low for the past few years and will probably remain so for the foreseeable future. But, there are other reasons you should sell your home. Consider the following market trends:

Mortgage Rates are the Lowest They Have Ever Been

Mortgage interest rates are historically low, making this the perfect time to sell your home.  Now, if mortgage rates rise even by half a percentage point, there will be a drop in home loan applications, and you will get to see how low rates impact the market.

Take Advantage of Low-Interest Rates

Rising interest rates drive up the prices of homes, making some homes unaffordable to some buyers. When you sell your home now, you attract more buyers, and the low-interest rates make homes more affordable. Low rates mean that buyers can save money; therefore, many potential buyers who are on the fence can start looking for their dream home.

If you are looking to buy a home, now is the best time to do so because if interest rates go up, buying a home could be more expensive for you.

Homes are Selling for More Than the Asking Price

In 2021, about a third of homes sold for more than the asking price, probably because of intense buyer interest. If you sell now, you have a chance to sell for top dollar and get the best return.

Take Advantage of High Resale Value

If you have lived in your home only for a few years, there is a high chance that you could sell it for more than you paid for it.

Most homeowners view their homes as investments, and if you want to cash in on your home equity, selling is a quick way to acquire those funds.

Home Building Has Gone Up

Data from the U.S. Census Bureau shows that each year, more and more homes are being built to accommodate the housing needs of the growing population. This shows that home builders are gaining more confidence in the market and are beginning to pump out more homes.

Why Should I Wait to Sell My House?

You should wait to sell your home if:

You Recently Refinanced

If you have recently refinanced, you should not be thinking about selling your home anytime soon. When you refinance the mortgage on your house, your monthly payments will go down. This way, you can alleviate financial woes.

Deputy Chief Economist for First American Financial Corporation, Odeta Kushi, states that since the pandemic started, a significant number of homeowners have locked into mortgage rates below 3 percent, making selling a less attractive option.

You Cannot Afford to Sell

Given the current market conditions, if you owe more on your home than what you expect to sell it for, you should probably refrain from selling. When you sell while underwater, you will need to bring money to the closing table.

We advise you to wait for your home to appreciate before you sell.

You Are Struggling to Find Your Next Home

One of the drawbacks of a seller’s market is that as a home seller, you might struggle to find your next home. This can discourage you from selling, knowing that you might not find a home to buy and force you to expand your search.

We recommend waiting for a more balanced market, which is unlikely to prevent you from selling your home at a higher price. When the market is balanced, you are less likely to see sale prices and multiple offers far beyond the asking price.

Looking to Buy or Sell a House? Anabella P. Jimenez Will Help Make the Process Seamless

Deciding whether to buy or sell a home is a lot of responsibility — therefore, finding an experienced agent who knows the ins and outs of your market is vitally important. Anabella P. Jimenez is committed to helping you sell your home faster, for more money, and helping you find and purchase a primary residence with little to no hassle.

Anabella has over 15 years of experience and is ready to work with you and make the home buying process as smooth as possible. She has worked hard to be the best in the business, and there is no obstacle or challenge that you face that she will not overcome using her sheer will and determination.

Feel free to contact Anabella via phone at (562) 655-8688 or visit her physical office at 2901 W Beverly Blvd Montebello CA 90640-2212. You can also text her directly or connect with her on Facebook, Instagram, or Zillow.