Does it make sense to sell a home in today’s housing market?
I speak to 30 to 40 people per day who are thinking about buying or selling, so I hear many questions and engage in an array of conversations concerning real estate. Right now, I’m often asked if it’s a good time to list a property for sale.
First, what’s your situation? Does it make sense for you to sell at the moment? Do you want or need to move, or do you own a rental property you need to sell? It makes sense to at least have a conversation with a real estate agent and discuss your options.
On the flip side, perhaps you’ve built up an incredible amount of equity in the last few years and are thinking about cashing out, but you are hesitant because you don’t know where you’d go. Maybe you don’t know how long you’d be in your next home, or if you’d be getting rid of an investment house, where you would put your money instead. If this is your situation, it may not make sense to sell in the current real estate market.
That’s because we’ve had a pullback on prices in some pockets of our market. The median housing price in our county was about $870,000 in the spring, and now it sits at around $810,000. However, a couple of pockets have appreciated, so things aren’t uniform throughout the county.
“Active properties on the market are selling at a far slower pace than they were a few months ago.”
Freddie Mac, one of the most trusted authorities on mortgages, forecasts that the 30-year fixed-interest rate will stay at approximately 5% through 2023. If it changes at all, it’s much more likely to increase than decrease. If mortgage rates rise, that means less affordability for buyers and potentially less profit for sellers.
We always track active inventory and the new listings coming onto the market. There were fewer listings this July than any other July over the last 20 years. That means fewer sellers are listing their properties.
Despite that, what’s interesting is that our months of inventory is still increasing. That means the active properties on the market are selling at a far slower pace than they did a few months ago. All of this shows that the demand in our marketplace has dropped.
If these trends continue and we see a buildup of inventory while mortgage rates stay roughly the same (or even climb a bit), that would lead to a reduction of prices on properties. Therefore, whether or not it’s a good time to list your house for sale will depend on your specific situation. If you have a real need to move or sell an investment property, it could be a great time to consider it. It’ll be crucial to speak with a professional about what makes the most sense for you.
If you have questions about the value of your property, would like my opinion on pricing, or any other advice I can provide about San Diego real estate, please reach out to me via phone or email. I look forward to hearing from you.