There are plenty of scenarios that make selling your home necessary – whether it’s to move across the country to be closer to family, because you need to downsize or you can’t afford mortgage payments anymore.
But when your timeline to move is flexible, you likely want to try to strategize over when and how you place your home on the market to find buyers, maximize profit and make it easier to buy a new home, if that’s what you’re doing next.
In 2023, homeowners can expect to see a different market than they witnessed in the early years of the pandemic with rapidly rising home prices, or even in 2022’s depleted demand due to high interest rates. While 2023 may see a recession, interest rates are expected to stabilize and some buyers are expected to return to the market. Buyers who have been in their homes for at least a few years can expect to see that their property value has grown – though it may look less thrilling than the peaks of 2021.
If you’re on the fence about selling, you have a few choices: You can put your house up for sale to take advantage of current low inventory (even with lower demand), you can wait to see how interest rates and inflation play out as they relate to housing or you can opt to stay in your current home for the foreseeable future.
Here are three reasons you shouldn’t sell your home in 2023, along with three reasons it’s a good idea to make the jump in the next 12 months:
- Wait to sell: You bought or refinanced in the last couple of years.
- Wait to sell: You’re worried about affording your next purchase.
- Wait to sell: You’re worried about finding your next home.
When to sell a home (9 common scenarios)
Typically, you should consider selling now if the circumstances provide favorable selling scenarios. Each scenario in our list below can count as a positive point toward your decision to sell. The right situations might include:
1. If mortgage interest rates are low
Historically, sellers will find the greatest success when interest rates are low and more buyers are on the hunt. So, today’s higher rates will likely play a role in your decision of whether to sell your house now or wait.
As of April 2023, average mortgage rates for a 30-year fixed loan stood at 6.27%, according to the Freddie Mac Primary Mortgage Market survey.
While the recent rate increases may seem significant, the current rate is actually still under the long-term average of 7.75%, according to Freddie Mac records going back to 1971.
2. If housing inventory is low
When supply is low and demand is high, selling your home can be more profitable.
The total inventory of for-sale homes in the U.S. remains relatively low. In February 2023, the housing inventory was estimated to be at 2.6 months of supply. A 6-months supply is representative of a balanced market.
3. If you need to relocate for a job or other life change
If the hand of change is knocking at your life’s front door, selling your home may be unavoidable. You may need to move for a job, a family medical crisis, or divorce.
Sometimes people that are selling right now need to sell more than they want to sell. And a top real estate agent in Harford County, Maryland and surrounds, can help to sell your house due to the family situation, or job relocation.
4. If your home’s value has grown
If you have lived in your current home a long time, or if property values in your neighborhood have increased to the point where you have earned a significant amount of home equity, now might be a good time to sell and cash out.
5. If you are ready to downsize
For many older homeowners, downsizing may be more than a desire; it may be a necessity, either for financial, mobility, or other health reasons. If maintaining your home has become difficult, now might be a good time to sell.
6. If you need to upsize
Perhaps you need more room because your family is growing. Or maybe an elderly relative or child must come to live with you. Maybe your employment changed and you need a home office. The need to upsize can play a big role in your decision to sell now.
7. If you’re selling a second or inherited home
Now may be an optimal window to be a seller who isn’t also trying to buy a home.
A lot of people are getting rid of their second property, their investment property that they had, or maybe they inherited a home or something like that. And We Sell Harford Homes realtor can help you sell that unwanted house.
8. If you can pay cash for your next home
Let’s say you’re relocating from Maryland to a countryside cottage in rural Michigan. The proceeds from the sale of your previous home will enable you to pay cash for a residence in a less expensive market. The use of cash eliminates the concern of giving up your lower mortgage rate.
9. You can’t afford to keep your home
Because of changes in your income or other financial setbacks, selling your home now may be the only way you can avoid potential foreclosure.
If you’re in a bind of this kind, selling now may be wiser than waiting, given the economic uncertainty moving into 2023.
Sell in 2023: A High Interest Rate Doesn’t Scare You
Mortgage rates reached higher levels in 2022 than in recent memory. For many homeowners, that’s enough to opt to stay in their current house. For others, the interest rate isn’t as much of a concern.
If an interest rate in the 5% or 6% range doesn’t scare you, a new mortgage after you sell your current house isn’t reason to stay put.
Plus, at the end of the day there is no way to perfectly time the market. If you can afford to move and want to move, selling your home in 2023 may be the best timing when there’s no way to know what’s ahead in 2024 and beyond.
Sell in 2023: You’re OK Waiting for the Right Buyer
There’s a lot of discussion about buyer demand dropping as high home prices and high interest rates put pressure on affordability across the U.S. However, the U.S. is still seeing positive home price growth. The median home sale price in November was $393,977, according to Redfin, which is a 2.9% increase from November 2021.
If you are selling your home at an appropriate price reflecting conditions, we’re finding that there are still buyers out there.
Sell in 2023: You Need to Move
If you need to move for any reason, it’s still possible to sell your home and find a new one. If you lost your job, you may be worried about your ability to continue to pay your mortgage. If that’s the case, selling may be a valid option. But plenty of others are opting for a life change that involves moving to another state, more room for a growing family or a bigger footprint needed for permanent work-from-home space.
Should I sell my house now?
If you’re ready to make a move, then this is certainly not a bad time to sell your home.
The best selling months are traditionally May, June and July. Yes, Sommer is a good time to sell your house.
If you’re just trying to time the market at its highest point, you want to sell in the summer and buy in the winter.
A sure way of knowing what to do in your particular situation is to ask a top agent who can guide you through the a changing housing market — whether you’re buying or selling. We Sell Harford Homes is the best agent in your area that will work with you to suits your needs.
Choose the right strategy to list your home WITH A LOCAL REALTOR
By working with a real estate agent, you can select the strategy when you need sell your home when the time is right based on the market conditions in your area. Choosing a realtor with extensive market knowledge and up-to-date research can help you select the best day to list your home and maximize your selling success. You don’t have to navigate all the critical decisions alone—an expert local real estate agent can guide you through the process and use marketing tools to craft a stand-out listing for your home.
We Sell Harford Homes is a top-rated real estate agent in Harford County, Maryland and surrounding areas experienced in any situation and property type. Whether you want to sell a condo, townhouse, single family house, or luxury property – we can assure you we will work hard to meet your real estate needs, and provide professional service. Whether you are going through a delicate situation as selling a house in a divorce, need to do a short sale or inherited a distressed house you want to sell, or just need to relocate quickly because of work- we can help you navigate the sale of your house and make it less stressful for you.
We will save you time, money and headaches!