Are you still on the fence about whether or not it’s a good time to sell your home? We understand that many things factor into your decision, from your changing needs to rising mortgage rates. We’ve been in a seller’s market for quite some time and many of the market conditions, that have made this such a good market for sellers, still persist. However, the tides could soon be changing. If you’ve been thinking about listing, here’s why the summer might still be the best time to list your home.
Demand is still high
Demand from buyers continues to be high. The pandemic has changed the way we live and the things we’re looking for in a home. Many buyers are in the market because their jobs have changed. Either they need more space to work from home, or they can now work from anywhere they like. Or perhaps they’ve started a family and need room for it to grow. Many buyers wanted to take advantage of record-low interest rates for mortgages. But mortgage rates are beginning to increase, and this is spurring buyers to hurry up and buy while they can still get good rates.
Supply is still low
Despite the recent increase in mortgage rates, home buyers are still very active in the market and the supply of listed homes is still very low in most Houston neighborhoods. In addition, rising prices for construction materials such as lumber have contributed to the decrease in new homes that are being built. All of this means that the number of homes on the market continues to lag behind buyer demand. If you’re ready to sell, then you’ll likely have less competition now than a year from now.
Home values have skyrocketed
According to the Houston Association of Realtors (HAR), home prices rose a whopping 14.3 percent from May 2021 to May 2022. That is considerably more than the 2.3 percent pre-pandemic growth we saw in 2019. Selling in 2022 means that you’re able to cash in on this increase. Because the value of your home has increased, you have more equity to leverage. This makes it easier for you to profit from your home sale and to apply those profits to the purchase of a new home.
Existing home sales are at a 15-year high
According to another report by HAR, the market is running 4.4 percent ahead of 2021’s record-setting number of home sales. Buyers are eager to buy, and the market needs more existing homes for sale to meet that demand.
Whether it is the right time to sell or not is fundamentally a very personal decision. It is specific to your long-term goals and the market dynamics in your particular neighborhood. National economic conditions can sometimes cloud the local economic factors that impact your property directly. Houston is not New York or Chicago or even Dallas.
If you are thinking of buying or selling a home this year or even next year, let us know. Even if we aren’t the right brokerage to assist you, we would be happy to provide you with some expert advice on the current state of the local market. Fill out the form below to speak with one of our professional agents