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Is it a good time to sell your home?

On Behalf of | Apr 12, 2022 | Real Estate Law |

Home prices have been skyrocketing. Much of this has to do with the housing shortage, which has been continuing now for over a year. As long as the supply of homes on the market remains low, the demand will remain high, and that keeps house prices as high as they’ve been.

If you’ve been watching the value of your own home go up for months or even a year, you might be wondering if it’s a good time to sell. There are a few things to consider.

The rate of increase is expected to fall

Home prices are probably not going to decline this year. However, experts do believe that they are not going to climb as fast as they did last year. This means that we may not have reached the absolute peak of these values, but you’re not likely to see the same change that you witnessed in 2021. This could indicate that it’s a good time to sell because you’ve already realized those gains and you can take advantage of them. You could also wait to see if the price continues to rise, but this does run the risk of hitting a reversal and you aren’t going to see as much growth anyway.

Where are you going to live?

Another thing to consider is simply where you want to live after you sell your home. One problem that people find with selling right now is that the value of all the comparable homes they would buy is also high. So it feels like a lateral move. But this can be the perfect time to sell if you’re looking to downsize your house or move into a different type of living situation, such as a retirement community. This can also be beneficial if you’re moving to a different state or even just a different location within the state where home values are lower.

Interest rates may climb

Another reason to begin looking into selling your home and buying another one at this time is that interest rates might go up in the future. This could make your future mortgage more expensive. For this reason, it could make sense to sell your home and then buy another one or even to simply refinance the home that you own.

The real estate market can grow very complex and it’s important to understand all of the options that you have as you consider what you want to accomplish in the future.