Are we finally going to see prices drop?
Probably not. After two solid years of spiking interest rates prices didn’t really budge. They did initially drop briefly 12% below the short lived market peak in March 2022 and yet prices have recovered all but 1% of that high. The Fed has tried to break the high prices by increasing the interest rate but even a huge increase in monthly costs to own a home have not resulted in lower house prices.
Should I hold and wait to sell ?
If you can hold on to your house you will likely get a higher price in the near future. Buyers traditionally take a break during the holidays and resume interest in purchasing again by February 1st which is when you should wait to put your house on the market. Demand has been building for 20 months because the high interest rates have left buyers unable to qualify for large enough loans to afford the high prices. When interest rates drop, buyers will qualify for higher prices again and come to the market to bid on yours. That is not likely to happen soon but for those with the luxury of being able to wait 1 to 4 years it may be to your advantage.
Meanwhile demand has fallen as it does seasonally and is down to just 1,500 homes a month which is as low as it was last year. The window for buying is currently the best it has been and may close quickly if interest rates drop and more buyers move into the market.
What should I do If I’m thinking of selling ?
Trying to time the market is often impractical and unwise. Price isn’t everything. Most people selling their homes do so because of life events that dictate timing. While they don’t want to lose money, they also want their transaction to work around changes in lives. In most cases the practical thing may be a slight delay regarding when to put a property on the market combined with a stellar presentation and a multiple offer strategy to drive up price between buyers.
The details of your life matter and your agent should be instrumental in helping you determine how to work your house sale into your life.
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