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Navigating the 2023 Real Estate Landscape: To Sell or Not to Sell
Selling your home is a big decision that can be influenced by many factors, from personal circumstances to the ever-changing real estate market. As we draw near to the end of 2023, let’s explore the reasons why you may want to hold off on selling your property this year and then discus some compelling reasons to consider making the move.
Reasons to Wait Before Selling
1. Recent Home Transaction – You love your rate
If you’ve recently moved or refinanced your home, you might not be motivated to put it on the market in the immediate future. Before 2022, many homeowners secured mortgage rates below 3%, which significantly reduced monthly payments. With rates currently hovering around 8%, selling now may mean a big step up in your interest rate, which could be a financial burden.
Steven Thomas, chief economist for Reports on Housing, points out how low-interest rates are keeping homeowners locked into their properties. If you’re enjoying a historically low rate, it might be wise to continue building equity in your current home. Selling in a rush may not be in your best financial interest.
2. Financial Considerations for Your Next Purchase – Affordability Worries
The last couple of years have seen housing prices rise dramatically, making affordability a primary concern. Adding higher interest rates into the mix can further complicate your decision. If you find that your buying power is significantly reduced due to higher interest rates, it’s sensible to wait before selling your home.
3. Challenges in the Home Search – Low Inventory Continues
While the housing market has become more balanced than in previous years, housing inventory remains low. With fewer homes available, finding the ideal property with the right number of bedrooms and location can be challenging. Although buyers are coming back to the market, new listings are still fewer compared to 2022.
While it’s less competitive than recent years, the market is far from a buyer’s paradise. Limited options may make it difficult to find your dream home, making it worthwhile to postpone selling until the market offers more favorable conditions.
Reasons for Selling in 2023
1. Overcoming High Interest Rates – Comfortable with a Future Refi
Mortgage rates rose significantly in 2022, leading many homeowners to stay put. However, for some, interest rates are not as much of a concern. If you are a cash buyer or have enough equity to secure a competitive mortgage rate, high interest rates might not deter you. Or maybe you are comfortable with refinancing when (and if) rates drop in 2024 and are willing to pay higher for the near term to secure a home that you love.
Industry experts are seeing that buyers are becoming less rate-sensitive and have adapted to the idea that higher interest rates are the new norm. If you can afford to move and want to, selling your home in 2023 might be your best timing since future interest rate trends remain uncertain.
2. Pricing Your Home Realistically – Understanding Your Home’s True Value
While the frenzied bidding wars of 2021 may have cooled off, properties are still in demand. To successfully sell in 2023, it’s essential to price your home realistically and invest in marketing strategies like 3D home tours and professional photography. Buyers are now more budget-conscious and will make offers based on the perceived value of your home.
Selling in 2023 doesn’t mean you won’t get a great price for your property, but it requires a pragmatic approach. Understanding your home’s value and setting a reasonable asking price can attract serious buyers.
3. Compelling Reasons for Relocation – You Have to Sell
Sometimes life throws us curveballs, and we must adapt. If you need to move for any reason, selling your home may be your best option. Whether it’s due to job loss, a desire for a change in location, a growing family, or the need for a larger workspace, moving is still possible.
Proper preparation and realistic expectations are key in these situations. A profitable sale and the purchase of a new home can be accomplished even in the current market conditions. Furthermore, changes in the economic landscape may open doors for buyers, especially if mortgage interest rates shift down.
Ultimately the decision to sell your home in 2023 is a personal one. While there are compelling reasons to hold off on selling, such as low mortgage rates and concerns about affordability and finding the right property, there are equally strong arguments for selling now. If you can handle higher interest rates, understand your home’s value, or need to move for personal or professional reasons, 2023/2024 might be the ideal time to make that transition.
Remember that working with an experienced real estate agent that knows the local market is key to your success. Contact me at 949-500-9714 to discuss your circumstances and goals. Whether you choose to sell or wait, I’m happy to walk with you through that decision.
