Are you thinking about selling your house? Are you considering waiting until 2022? You might want to sell your house in 2021 and meet not only your needs but also the needs of homebuyers. Let’s look at a few factors that might influence your decision to sell.
If you’re on the fence about whether or not you want to sell your house this year, consider what buyers are facing and how it might affect the ability to buy a home in 2022.
- Soaring inflation
- Increasing interest rates
- Climbing housing prices
- Limited wage growth
1. Homeseller’s Market
Today’s housing market is a home seller’s market -- many home buyers but not enough houses for sale. Housing prices have increased throughout the pandemic, pleasing home sellers as they profit greatly. This trend has priced some homebuyers out of the market. They’re left wondering if they’ll be able to afford a house despite historically low-interest rates.
Consider the following as you prepare to put your house on the market:
- There is a high demand for houses right now
- Interest rates are still historically low
- Home price appreciation expected to slow in mid-2022
2. Housing Costs Outpace Wage Growth
As you wait to put your house on the market, the cost for homebuyers keeps ticking up in more ways than one. Because of soaring inflation, increasing mortgage interest rates, climbing housing prices, and limited wage increases, homebuyers are discovering that the same house for sale in 2021 will cost more overall in 2022.
According to The National Association of Realtors (NAR), from August 2020 to August 2021, the median existing home price increased 14.9%. A $350,000 home in August of 2020 grew to $402,150 in 2021 as a result of inflation. That’s an added cost of $52,150 for the homebuyer, plus they’ll be paying more in mortgage interest and homeowners insurance. Seeing the rising cost of houses through the eyes of a homebuyer helps you understand how fewer buyers will be able to afford a home in 2022.
According to The National Association of Realtors (NAR), the median existing-home price for all housing types in August was $356,700, up 14.9 percent from August 2020 ($310,400).
3. Higher Interest Rates, Inflation
Home prices continue to climb, but with changes in interest rates (higher) and inflation (greater), will buyers be able to afford to buy your home in 2022? By selling your house now, you satisfy the need for more houses on the market, your need to make a significant profit, and homebuyers who want to avoid being priced out of buying in 2022.
According to The Mortgage Bankers Association,
interest rates are predicted to climb to 4% in 2022.
4. Homebuyers May Not Qualify For a Mortgage in 2022
Waiting until 2022 to sell your home may prove to be unfavorable as fewer and fewer homebuyers qualify for mortgages. According to The Mortgage Bankers Association, mortgage rates are predicted to grow to 4% in 2022, making it difficult for homebuyers to afford monthly mortgage payments.
Selling your home before the end of 2021 might prove to be the best move for you and the homebuyer. With home prices predicted to even out in mid-2022, you may earn more of a profit from the sale of your home if you have your agent puts it on the market before the end of 2021. Another consideration is selling before harsh weather becomes a factor in your area. Talk to your real estate agent today to see what your home is worth and why now is a great time to sell.
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