Should you wait to sell home during the next real estate boom?
The real estate market is always fluctuating, but these past three years have brought new highs and lows. In 2020, the world was experiencing the pandemic, and many were wary how uncertain everything was. Then, due to low interest rates and high demand, Arizona homes were selling at a feverish rate with many buyers in tense bidding wars. Now, the market is cooling slightly and in fact, there was a 17.6% decrease in home sales this September compared to September 2021, according to the United States Census Bureau.
As the housing market continues to calm, we are faced with a predicament: sell your home now or wait to sell your home until after the interest rates to go down.
Many people still want to invest in Arizona homes
Arizona is still a hot market to buy in and sellers still have the advantage despite rising interest rates. The weather, stunning landscapes, and abundance of employment opportunities make the metro Phoenix area a prime location for retirement and new opportunities. Therefore, there are many buyers who are still looking to invest in properties in the state.
Purchasing your dream home may be more attainable
After selling your home, you’ll likely need to purchase a new one. The benefit of purchasing a home in a cool down is that you can get a cheaper price for your dream home. Interest rates are high right now, but you can refinance your mortgage in the future. A common saying to follow is “marry the house, date the rate.” So, if you sell now and purchase a new home, you’ll be buying it at a lower price than if you waited for the market to skyrocket once again.
The potential for a large profit is big
Home prices are much more complex than what a buyer may see at first glance. Depending on the attributes of your home, you may have a huge profit in store. The neighborhood, age, condition, size and upgrades are all factors that determine the price of your home. If you bought your house prior to the increase in values, it is possible that you have gained a substantial amount of equity. According to Hometap, Arizona homeowners are ranked to have the fifth largest amount of homeowner equity, averaging at $96,000. This can result in a generous profit if you decide to sell.
Deciding whether to sell your home is a big decision to make, but don’t be discouraged by the fluctuating market. There are plenty of advantages to buying and selling during this cool period that you may want to take advantage of.
Author: Rich La Rue is the Designated Broker for HomeSmart Phoenix, the flagship brokerage operation in the HomeSmart system. For more information, visit www.richlarue.com.