Sell House Now or Wait

The big question everyone is asking in the current housing and economic market is, “Sell house now or wait?”

Excessive Appreciation

The past several years have delivered an astounding 34% appreciation rate for many areas in the United States. The value of a home skyrocketed during the Covid lock down. When people were forced to work and school out of their home it significantly raised the value of that real estate.

Appreciation Reset

Being locked down is over. Real estate is getting back to where it used to be. For the healthier, more popular residential areas this means coming back to the 7-12% annual appreciation. The Federal Reserve rate hikes aim to help accomplish this.

Does this appreciation slow down mean you should sell your home now? The answer usually always comes down to lifestyle. If you are an empty nester and have more square foot then you need then yes, now is an excellent time to sell. If you bought ten+ years ago you will make double or triple what you paid. The down side is that you will have to pay double or triple for your next home purchase.

Reasons to Sell Now

This move works out in your favor in the following circumstances;

1. You want to downsize. Buying a smaller home and a smaller lot will translate into equity in your pocket. This is especially true if you’re downsizing from a large residential home into a condo or townhouse.
2. You want to move further away from the city center. Real estate nearest the city is almost always more expensive. As you move away from the city center it becomes more affordable. If you are retiring it may be that you don’t need close proximity to downtown. It may also be that you can commute for part of the work week and therefore can live farther away. This will place equity in your pocket even if you chose a property similar to what you have now but with a different location.
3. Relocate. Maybe you’ve always dreamed of living somewhere else. This is an excellent time to make the move. 1.

Reasons Not to Sell Now

Here are the top 3 reasons not to sell now and to wait;

1. You love your location. If the location you live in works ideally for you then it doesn’t make sense to move unless you have a large home and want to shift into a low maintenance situation that a condo or townhouse offers.
2. Your house fits your family lifestyle. If it works, don’t change it.
3. Major life change. If you just had a major life change like the death of a spouse or child it’s best to wait at least a year to make the decision about moving. Moving on top of a life crisis doubles the stress level and just isn’t worth it. Sit tight for a while and then decide what you want to do.

If you think you might want to make your move now, give us a call! We would love to meet with you to give you the most current information about your house and neighborhood to help you make the most informed decision.