69% of Americans think now is a good time to sell a home. Here’s why it’s worth listing sooner rather than later
There’s a reason today’s sellers should act fast.
- Fannie Mae reports that most people think it’s a good time to sell a house.
- That could change later in 2022 if mortgage rates continue to rise.
While the start of 2022 may be a difficult time to enter the housing market from a buyer’s perspective, sellers appear to have the upper hand for the moment. And most Americans agree.
A whopping 69% of Americans think now is a good time to sell a home, according to the Jan Fannie Mae Home Purchase Sentiment Index. In contrast, only 25% of Americans think it’s a good time to buy one.
But while the real estate market might favor sellers today, that may not be the case later in 2022. If you’re thinking of selling your home, it’s best to get the ball rolling sooner rather than later.
Don’t wait to sell
There’s a good chance mortgage rates will continue to rise month-on-month this year. For one, they’ve been so low for so long that the only place they can really go is up. The Federal Reserve has also made it clear that it plans to raise its Federal Funds Rate.
The Fed doesn’t actually set mortgage rates or consumer rates. But his actions may affect interest rate activity, so consumer interest rates could rise according to his plans. In a way, that could be a good thing, as it can mean more generous interest rates at banks. But it could also mean higher borrowing costs for everything from mortgages to credit cards to personal loans.
If mortgage rates continue to rise this year, it could result in lower buyer demand. Once that happens, property prices could start falling. If you want a chance to get the highest possible price for your home, you might want to list it sooner rather than later.
Also, the housing market is generally starved for inventory right now. But we don’t know if that will be the case later in the year.
A big reason for the lack of inventory is that sellers have been reluctant to list their properties during a pandemic. At this point, however, it seems like COVID-19 is here to stay, and as the country learns to manage the virus rather than impose restrictions, that hesitation could turn into action – and more competition.
Do not wait
If you’re unsure if you’re ready to sell your home this year, don’t rush the decision. But if you want to list your home sometime in 2022, it might pay off to do it now.
It’s clear that the beginning of the year is a great time for sellers. But there’s no guarantee the market will stay that way for long. And if you wait until you list your home, you may end up regretting it.
A historic opportunity to potentially save thousands on your mortgage
Interest rates are unlikely to remain at multi-decade lows much longer. That’s why it’s crucial to take action today, whether you’re refinancing and cutting your mortgage payment or ready to pull the trigger on a new home purchase.
The Ascent’s in-house mortgage expert recommends this company find a low interest rate – and in fact he’s used them to refect himself (twice!). Click here to learn more and see your plan. While this doesn’t affect our opinions about products, we do receive compensation from partners whose listings appear here. We are always by your side. Here is The Ascent’s full advertiser disclosure.