The housing market is in favor of the seller for the time being, and experts believe it will stay that way, at least for now. If you are one of many homeowners considering selling, now is the time. The main reasons homeowners are selling their homes in 2022 have to do with the low-interest rates, relocating for work, and the high demand for houses.
For other homeowners that are on the fence about selling their house, now is the time to jump. Real estate professionals across the board will tell you things look great for sellers but aren't likely going to stay that way for long. In reality, there are more than four reasons that 2022 might be your year to sell. This decision can look very different depending on the individual and all situations in life. Nevertheless, there are four popular reasons why homeowners are taking the plunge, specifically in 2022.
Are you thinking about selling your home now? Well, here are a few great reasons to take the plunge.
Interest Rates are Relatively Low (For Now)
The Covid Pandemic made its mark in more than just healthcare; it has hit the housing markets as well. Over the last few years, interest rates reached all-time, record-setting lows. But why is this a good thing for sellers? The low interest is definitely a huge benefit for buyers looking to purchase houses this year, especially since the rates are slowly starting to climb.
The projected increase in rates is where buyers benefit. Many people are moving fast to lock in low rates, ready now more than ever to purchase homes and at a higher price since they can afford it with the lower interest. According to analysts, 2023 will likely be hard for home buyers.
As interest rates continue to slowly rise, the real estate landscape will continue to change. Professional home buyers, such as OpenDoor and other iBuyers, are slowing their purchasing. This shift in demand can make it tougher to find a buyer when you go to sell. Even if you have to pay OpenDoor fees as a seller, it’s worth considering assuming that it will be harder to find a buyer next year. Take advantage of the time that you have now and think about selling your home.
Relocating for Work (Upgrading for Work)
Another negative effect the pandemic brought to the world was a lack of work and more time to consider making big decisions. Countless people are currently house hunting because they need to relocate for a new job or better-paying position. On the flip side, the workforce also made adjustments in favor of homeowners offering remote and hybrid jobs in all fields and professions. In this case, many people are looking for ways to accommodate their new "office" requiring extra space.
Take Advantage of the Housing Demand
Another reason 2022 is the year to sell your home is thanks to the housing demand. Economic hardship and uncertainty played a role in whether or not homeowners would risk selling. Because there is such a deficit in the housing market right now, those who choose to sell are looking at getting a higher price.
Professionals say that the average national selling price at the beginning of 2022 was up 35% compared to 2020 when the pandemic began. While the market should still be in favor of the seller, for now, the future doesn't look as promising. According to Zillow, the outlook for sellers are ideal until mid-2023, with the average incline dropping to +11% and continuing to lower from there.
Rent is Getting More Expensive
Along with just about everything else, the number of money landlords charges for rent continues to increase as the economy continues to decline. A lot of people looking to purchase their first home are seeing the benefits of choosing a mortgage over paying a boatload for rent. While it doesn't look like this issue will go away anytime soon, it is still a great reason for homeowners to consider selling their property to take advantage while the market is hot.
Is the Market Ideal for All Homes?
The condition of your house will definitely play a role in how much you will make on it, no matter what the market looks like. With that being said, you will still get a much higher price in 2022 than you would have a few years ago and then what you will in the near future. If you are struggling to sell your home through a traditional real estate company, you can always consider utilizing a cash-for-sale program where you will be given a fair price for the market conditions, and you can sell your house quickly. You won’t have to stage, clean, or fix your home before selling it.
Who Shouldn't Sell Their Homes in 2022?
Just because the market is in the seller's favor, it doesn't mean every homeowner will benefit from selling their house now. There are a few reasons to hold on to your property this year.
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You have a Low Credit Score - Unless you already secured another place to live, getting a mortgage of your own can be difficult with a low credit score, meaning you should stay in place for now.
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You just refinanced - If you recently refinanced your home, chances are good you locked in a great rate, and there is no chance of matching that moving forward. Take advantage of the lower monthly bills while they are still available.
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You lost your job or took a pay cut - If you are not financially stable now, it is not a good time to sell your home. While you may feel the immediate benefits of a quick sale, the struggling economy will catch up to you, and you won't have a secure place to live.
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You're struggling to pay your current bills - If you are struggling to pay your bills now, it is time to work on finances and possibly a new job, putting selling your house on the back burner.
Some of these reasons don't necessarily have to be deal breakers. However, they are all extremely important to consider before making any final decisions.
Final Thoughts
It is no secret that the housing market is changing quickly. If you have been thinking about putting your house on the market, there is no better time to do so than now.