In 2022 we finally saw low interest rates begin to creep up. In fact, by the end of 2022, mortgage rates had doubled from their lows and began approach 7%.
The mortgage rate increases, coupled with overall economic uncertainty has brought a mixed bag of expectations for the 2023 housing market.
So, is it a good time or bad time to sell your property? The short answer is – it depends. Specifically, it depends on these factors below:
- Your price point: Entry level homes priced under $350,000 are taking longer to sell than the last two years because high interest rates have locked first-time buyers out of the market.
- Your city and neighborhood: Some cities are actually still "hot" and experiencing multiple offer situations and over-asking price sales. On the other hand, other towns and cities are experiencing a high "days on market" metric - often more than 30 days.
Reasons to Consider Selling in 2023
Sure, markets aren't as frothy as 2021, but it might still make sense to list and sell in 2023. It's important to check inventory levels in your specific city because each city may or may not reflect the national characteristics of a sluggish market.
Home Prices Are Still High
Home values have been on the rise for quite a while now. But will it continue? Most economist are predicting price flattening in 2023 and even negative appreciation (price declines) in many markets. In fact, our experts at SimpleShowing believe that home prices may drop up to 10% in some markets this year.
Most of the coastal markets and cities in the Northeast are where price declines are expected. But even despite that, a recent poll we conducted found that 68% percent of potential home sellers still think that it is a good time to sell.
It might be a good time to put your home on the market if you are worried about maintaining short term property value and want to sell for a guaranteed higher price.
Decreased Competition in the Market
In general, the housing market in the US is still experiencing a relatively strong seller's market due to low inventory. In other words, less people overall that are listing their property - which tends to favor home sellers.
On the other hand, homebuyer demand has decreased since the Summer of 2022 due to rising interest rates. If your market has low inventory and relatively high demand, you should definitely consider listing your home in 2023.
Home Selling Tips for 2023
If you are thinking about putting your home up for sale, here are five tips that can make your home sell faster and for more money.
Price Your Home Correctly
When home buyers start their home search, one of the first things they decide on is a price range. As a result, price is going to be one of the biggest deciding factors in whether or not they move forward with a home.
This is why price is extremely important when putting your home up for sale. If you price your home too high, you are going to push away prospective buyers and your home will sit for weeks, if not months.
Don't Put Too Much Weight in Recent Comparable Sales
When valuing their property, most sellers will simply look for the highest recent sale in their area and add 5%. In other words, if they notice a home sold two months ago for $400,000, they'll simply say "well, I guess my home is worth at least $400,000 but let's try to sell it for $425,000.
In the last year or two, the approach above has actually worked. That's because we saw double-digit price appreciation in most markets. But old comps my not represent the true value of your home in 2023, unfortunately. In fact, your home may actually need to be listed for BELOW recent comps.
Speak With A Licensed Real Estate Agent
Before you decide whether or not now is a good time to sell your home, it may be beneficial to speak with a licensed real estate agent. They can help you weigh the pro's and con's to determine if this is a good option for you.
SimpleShowing Agents are here to speak with you about your situation and save you thousands with our 1% listing fee.
Contact us to speak with an agent today.