Friday, November 18, 2022 / by Laura Larson
1. Should I Put Off Selling?
Even though there are more houses for sale in 2022, the overall inventory is still low. The National Association of Realtors (NAR) shows how far we are from a buyers' market. Although the increase in inventory has given buyers some negotiating power back, your window of opportunity to sell has not passed. Since there is less competition for your home, it can still be noticed, especially if you list now while other sellers wait until after the holiday rush and the beginning of the new year.
2. Are Buyers Still Out There?
Remember that not all homeowners will see a decline in buyer activity as a result of rising mortgage rates if you are considering selling your home but are holding off because of your concerns. The demand for homes has decreased this year, but millennials are still actively seeking. According to a Forbes article: “At about 80 million strong, millennials currently make up the largest share of homebuyers (43%) in the U.S., according to a recent National Association of Realtors (NAR) report. Simply due to their numbers and eagerness to become homeowners, this cohort is quite literally shaping the next frontier of the home-buying process. Once known as the ‘rent generation,’ millennials have proven to be savvy buyers who are quite nimble in their quest to own real estate. In fact, I don’t think it’s a stretch to say they are the key to the overall health and stability of the current housing industry.”
Although the millennial generation has been referred to as the "renter generation," that moniker is no longer appropriate. Millennials have become a key factor in today's housing market. If you're wondering whether there are any buyers out there right now, you should know that there are. And they might find all they need in your home.
3. Do I Have the Money to Buy My Next House?
You might have more equity in your current home than you realize, so keep that in mind if the state of the market is making you concerned about how you'll pay for your next move. Homeowners have built up substantial equity over the past few years, and this equity can significantly alter the affordability equation, particularly given that mortgage rates are currently higher than they were a year ago. According to Mark Fleming, First American's chief economist: “... homeowners, in aggregate, have historically high levels of home equity. For some of those equity-rich homeowners, that means moving and taking on a higher mortgage rate isn’t a huge deal—especially if they are moving to a more affordable city.”