Many homeowners that consider selling their homes will take a long time to make a final decision in an attempt to time the market. In most cases, this approach doesn't work as intended. You may end up waiting too long or placing your home on the market at an inopportune time. Even though it's typically difficult to know when to put your home on the market, the health of the real estate market at the moment means that 2023 is almost certainly the ideal time to sell your home. The following details the main reasons why you should sell your home in 2023 and how you can benefit from doing so.
Sell Because of High Home Values
Home prices across the U.S. have been increasing at a steady rate since the financial crisis of 2008. While there have been some small dips every now and then, homeowners were able to depend on these increases to gain a profit when they eventually sold their home. Home values in the U.S. grew by around 17.5% between quarter four 2022 and quarter four 2021.
Despite the overall increase in home values, buyer demand continues to be high. By being able to list your home at your desired price, it's possible that the final sale of your home will occur at the price that will net you high returns for your investment. If you purchased your home more than five years ago, it should have appreciated by a considerable amount over that time.
Sell Because of Low Inventory
While buyer competition remains exceedingly high, you won't need to contend with much competition when listing your home on the market. Home inventory throughout most of the housing market is surprisingly low. Because homes are considered to be such a wise investment, many homeowners are choosing to stay put instead of listing their property on the market. At the same time, an increasing number of buyers are in need of a home, which means that the market conditions are highly beneficial for sellers.
If you decide to list your home in 2023, it's likely that you won't have much competition to deal with regardless of where you live. As long as you list your home at a reasonable price that isn't unrealistically high, at least one offer should be made on your home in short order.
The most advantageous situation for a seller results from a bidding war. If you've never sold a home before, a bidding war takes place when multiple buyers make bids at the same time. In this situation, you have all of the negotiating power. If your home proves to be appealing to potential buyers, these buyers may make higher and higher bids in an attempt to "outlast" the other bidders.
Sell Because of Increased Buyer Demand
You should also look to sell your home in 2023 because of an increase in buyer demand. As mentioned previously, more and more buyers are looking to purchase homes. Ever since national interest rates were lowered in 2020 because of the COVID-19 pandemic, buyers have been entering the market at a rapid rate. Coupled with the desire for a more stable living situation, the low interest rates have created a situation where homeowners can place their properties on the market and receive one or more bids in just a couple days.
Even though home prices are currently increasing, many potential buyers see these increases as an opportunity to purchase a home before prices are too high. Since many buyers are first-time buyers, homes that are selling at entry-level prices are in demand. The entry-level price range largely depends on where you live.
The Realtor.com national housing forecast expects home prices to increase by around 3% in 2023. Even though this increase isn't as high as the one that occurred in 2021, buyer demand should remain at high levels.
Sell Because You Need to Move
If you feel that moving to a new home is necessary, now is a great time to sell. Whether you want to buy a larger home to support a growing family or relocate to another state as part of your job, you should find it easy to sell your home quickly once it has been listed on the market.
Because of the lack of inventory at the moment, you won't need to contend with much competition, which makes it considerably likely that your home will be sold at the right price. If you wait too long, inventory could increase, which may be enough to satiate buyer demand.
Sell Because of Increasing Interest Rates
A top reason to sell your home is because of the increasing interest rates that lenders are attaching to mortgages. Even though mortgage rates have been historically low for a long time, it's believed that they will increase significantly throughout 2023. These increases are set to occur when the Federal Reserve raises national interest rates. Even though higher interest rates could be seen as an issue for homeowners who wish to sell, the truth is that interest rates will still be historically low even after the increases.
An increase in interest rates could push potential buyers to enter the market out of fear that interest rates may eventually be too high for them to afford. You have an opportunity to take advantage of the greater buyer demand alongside the increasing interest rates.
Is 2022 a Good Time to Sell?
It's impossible to predict with 100% accuracy what will occur in the housing market in the future. However, recent trends paint a relatively clear picture of what the housing market will look like over the next year. Buyer demand continues to be high and shows no signs of slowing down. Low inventory is proving to be a long-term issue, which means that you won't have much competition once your home is listed on the market. If you're thinking about selling your home, 2023 may be the perfect time for you to do so.
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