Sellers

Things to Consider When Selling Your House

Spring 2023 EDITION

Things To Consider When Selling Your House

Spring 2023 EDITION

There’s a lot going on in the housing market this season, and you may have some questions about selling your house. Here are a few of the top things you may be wondering about, and the answers that can help you make a confident, informed decision. 

1. Should I Wait To Sell?

There are more homes for sale today than there were at this time last year, but it’s important to keep in mind there are still fewer homes available than there were before the pandemic. So, selling while inventory is low means if you price your house right, it is likely to be in high demand. That means you can take advantage of more options for your move and list your house in a true sweet spot.

2. Are Buyers Still out There?

If you’re thinking of selling your house but worry buyer demand is disappearing in the face of higher mortgage rates, you should know that isn’t the case for everyone. Mark Fleming, Chief Economist at First American, explains: “The housing market, once adjusted to the new normal of higher mortgage rates, will benefit from continued strong demographic-driven demand relative to an overall, long-run shortage of supply.” If you’re wondering if buyers are still out there, know there are still people searching for a home to buy. And your house may be exactly what they’re looking for.


3. Can I Still Get a Good Price for My House?

Home price growth has moderated in recent months as buyer demand has pulled back in
response to higher mortgage rates. While home prices in some local markets may have declined
slightly, national home values are still up compared to this time last year.
While it is slowing, today’s annual rate of price appreciation is still above the rate of growth we
saw during more normal years in the market. So, even though the average home isn

Bottom Line: If you’re thinking about selling your house this spring, let’s connect so you have the expert insights you need to make the best possible move today.

 

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What's Ahead For Mortgage Rates?

As you make plans to sell your house and move this spring, you may be thinking
about what lies ahead for mortgage rates and home prices. Here’s a look at
expert insights on where both may be headed so you can make the most
informed decision possible.  

Mortgage Rates Will Continue To Respond to Inflation Last year, mortgage rates more than doubled within the calendar year. That’s never
happened before, and the rapid rise caused many buyers to put their plans on hold. Today, rates are still quite volatile. With experts projecting rates will stabilize this year, that could be good news for you as it may mean more buyers jumping back into the
market. And any drop in interest rates would boost your purchasing power for your next home by bringing your expected monthly mortgage payment down. But you shouldn’t expect them to drop all the way to the record lows we saw in 2021.

 Greg McBride, Chief Financial Analyst at Bankrate, explains:
“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.” 

Home Prices Will Remain Relatively Flat
Homes prices will always be defined by supply and demand. When there are more buyers than homes on the market, home prices will rise. And that’s exactly what we saw during the pandemic.

But things have changed. We’ve seen home prices moderate and housing supply grow as buyer demand pulled back due to higher mortgage rates last year. The level of moderation has varied by local area – with the biggest changes happening in overheated markets.

But do experts think that will continue? Some experts are saying home prices will appreciate this year, and others are saying home prices will come down. But again, if we take the average of all the forecasts we can get a feel for what 2023 may hold. The truth is probably somewhere in the middle. That means nationally, we’ll likely see relatively flat or neutral appreciation.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:
“After a big boom over the past two years, there will essentially be no change nationally...Half of the country may experience small price gains, while the other half may
see slight price declines.”

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Number of Homes For Sale Up, But Below Pre-Pandemic Years

There aren’t enough homes for sale today to meet buyer demand. This spring could be the ideal time to make a move if you’ve been thinking about selling your house.

The biggest challenge in the housing market right now, and likely for years to come, is how few homes there are for sale compared to the number of people who want to buy. That’s why, if you’re thinking about selling your house, now is a great time to do so. Your house would be welcome in a market that has fewer homes for sale than it did in the years leading up to the pandemic.

According to realtor.com: “While the number of homes for sale is increasing, it is still 43.2% lower than it was before the pandemic in 2017 to 2019. This means that there are still fewer homes available to buy on a typical day than there were a few years ago.”

What Does This Mean for You? 
Fewer homes for sale than we had before the pandemic means buyers have fewer choices—and that frustration is leading some to give up on the homebuying process altogether. But with mortgage rates sitting lower than they were at their peak last fall, more buyers are willing to come back into the process now—they just need to find homes to buy.

This is welcome activity for the spring market, especially if you’re thinking of selling your house. With many people finding a renewed interest in buying a home, the New York Times (NYT) reports: “Home buyers are edging back into the market after being sidelined
last year...”

So, if you want to take advantage of a
sweet spot in the market, this spring could be your shot!

Bottom Line:
The housing market needs more homes for sale to meet the demand from today’s buyers. If you’ve thought about selling, now’s the time to get ready to make a move this spring.

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Top Reasons Homeowners Are Selling

You have a lot to consider when thinking about moving. While mortgage rates and wealth building are important, there are plenty of non-financial reasons to factor in too.

Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house.

And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.

Today, 93% of outstanding mortgages have a rate at or below 6%. That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now.

But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but you can always refinance when rates come down in the future. There are plenty of reasons you may still need or want to move.

RealTrends explains:
“The most common sellers will be: Homeowners downsizing . . . people moving to get more space, families looking for better schools…etc.”

So, if you’re on the fence about selling your house, consider the other reasons
homeowners like you are choosing to make a move. A recent report from the National Association of Realtors (NAR) breaks down why homeowners have decided to sell over the past year:

The most commonly cited reasons for selling were: the desire to move closer to loved ones (21%), followed by moving due to retirement (11%). Additionally, the need for more space factored in (10%), as did a change in household structure (9%).


If you want a change in location or need space your current house just can’t provide, it may be time to sell. What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer advice and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.

Bottom Line:
When deciding whether or not to move, you have a lot to consider. There are plenty of non-financial reasons to factor in. Let’s connect so I can help you weigh the benefits of selling your house.

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Today's Home Owners Still Have Positive Equity Gains

If you’re a current homeowner, your net worth got a big boost over the past few years thanks to rising home prices. That increase in your wealth came in the form of home equity. Here’s what you need to know about how equity works and how it can help you address your changing needs if you want to make a move.

What Is Home Equity?
Equity is the current value of your home minus what you owe on the loan. Over time, you build equity as you make your monthly mortgage
payments and as home prices appreciate.

Why Your Equity Has Grown in
Recent Years?
Because of the imbalance between how many homes were for sale and the number of homebuyers over the past few years, home prices appreciated substantially.

And while home price appreciation has moderated, and even depreciated slightly in some markets, that doesn’t mean you’ve lost all the equity you gained. In fact, Homeowner Equity Insights from CoreLogic finds the average homeowner’s equity has grown by $34,300 over the past year alone. And if you’ve been in your home for longer than a year, chances are you have even more equity than you realize.

Why This Is So Important Right Now?
While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment of your next home. So, if you’ve been holding off on selling, rest assured you’ve gained equity in recent years, and it can help fuel your move.

Bottom Line:
If you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, let’s connect.

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The Ideal Week To List Your House?

If you’re thinking about selling this spring, it’s time to get moving – the best week to list your house is fast approaching.

Experts at realtor.com looked at seasonal trends from recent years (excluding 2020 as an uncharacteristic year due to the onset of the pandemic) and determined the ideal week to list a house this year:

“Home sellers on the fence waiting for that perfect moment to sell should start preparations, because the best time to list a home in 2023 is approaching quickly. The week of April 16-22 is expected to have the ideal balance of housing market conditions that favor home sellers, more so than any other week in the year.”

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