So, I have been asked this question often lately, “is it a good time to sell my home”?
Unfortunately, my answer is going to sound like a politician, or an economist to be honest.
The answer isn’t simple, it depends, the politician’s answer.
As a seller have you missed the peak of the market? Simply put, yes. That was around late March through May. The insane over-bidding and 50+ offers on your home overnight is gone.
It depends on your reasons for selling. Is it a necessity? If so, like you’re moving out of State or some distance away from where you live currently, then yes. If you’re taking advantage of less competition and competing with other offers to move up, again probably yes.
Here comes the economist’s response, “on the other hand” (decrying the need for a one -handed economist President Harry Truman once said “Give me a one-handed Economist. All my economists say, 'on the one...', then 'but on the other hand...”), if you have no real need to sell, now isn’t the best time to sell.
Here is why I say that. We are probably already in a recession, forced by the continuing Federal Reserve raising interest rates aggressively to slow inflation, although no one really wants to use the “R” word. However, during the past six recessions this Country has experienced, the price of housing continued to rise in four of them, yes, that’s right home prices increased.
People often point the last recession as an example of what’s coming with home prices, where they dropped as much as 19%. But we are not at all in the same position as then, two major differences, one there was a very large inventory of new home and homes for sale then, and two, poor loan practices, if you could fog a mirror, you could get a loan, not anymore!
We currently have a huge inventory shortage, and it is far more difficult to get a loan today. Simple supply and demand seem to be pushing home prices up, albeit more slowly, but up, nonetheless. Are prices dropping from the insane overbidding by 20-30% from March – May, absolutely. But aside from those crazy up-bid prices, it’s still appreciating slowly.
In summary, my crystal ball is broken and the people who are supposed to KNOW are admittedly Guessing. So, if you need or want to and can afford to buy, then sure now’s a good time to sell, it’s still a seller’s market. “On the other hand,” … If you don’t need to, then it doesn’t appear you’ll be hurt by waiting to see how things shake out over the next several months and just let your home appreciate in value.