Why You Should (and Shouldn't) Sell Your Home in 2024_2

Why You Should Sell in 2024 :

• Favorable Market Conditions

As mentioned earlier, if market conditions favor sellers, you shouldn't hesitate to make your move. The key factors to pay attention to are interest rates and housing inventory.

When interest rates are low, more buyers are enticed to enter the real estate market, creating more opportunities for sellers. If this is the case in your local market, take advantage of it and consider preparing your property for sale.

Supply is another crucial factor. When there are few homes available for sale, demand and prices soar, and the available properties usually sell quickly.

• You're not deterred by high interest rates.

Mortgage rates reached higher levels in 2023 than in recent memory. For many homeowners, that’s enough to opt to stay in their current house. For others, the interest rate isn’t as much of a concern.

“There may be buyers that are not as rate sensitive,” says Mike Reynolds, vice president of investment strategy at Glenmede, a Philadelphia-based wealth management firm. You may be a cash buyer without plans to finance your next house at all, or you may have enough equity in your current home to feel confident you can buy down your next mortgage rate to a more attractive level.

The more prolonged period of interest rates above 6% has also given many would-be homebuyers the opportunity to get used to the prospect of higher mortgage costs – it may require an adjusted budget, but it doesn’t necessarily mean you can’t make a purchase.

“Buyers seem to be OK with the idea that a mortgage rate in the 6% to 7% range is the norm, not the exception,” Divounguy says.

Plus, at the end of the day, there is no way to perfectly time the market. If you can afford to move and want to move, selling your home in 2024 may be the best timing since there’s no way to know what lies ahead.

• You have a clear understanding of your home's value.

Many housing markets across the U.S. are still seeing plenty of buyer interest, but properties aren’t getting the regular bidding wars and sky-high sale prices they were in 2021. If you sell your home in 2024, buyers will be less inclined to offer above the asking price – and they may not look at all if the asking price is too much.

Divounguy says the houses selling fast today and receiving more than one offer are those that are priced to sell and offer all the marketing bells and whistles, like a 3D home tour and professional photography.

Unless your real estate agent says otherwise, based on recent sales in your area, you’re unlikely to get $100,000 above the asking price for your starter home without an appraisal contingency. With buyers looking carefully at their budgets, they’ll be making serious offers based on what makes sense for their budget and what they believe your home is worth.

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• You need to move.

If you need to move for any reason, it’s still possible to sell your home and find a new one. If you’ve lost your job and are worried about paying your mortgage, selling may be a valid option. Many others are choosing to move for life changes, such as relocating to another state, needing more space for a growing family, or requiring a larger home for permanent work-from-home arrangements.

A profitable sale and purchase of a new home is still possible – but proper preparation and realistic expectations are key.

"Today's homeowners should carefully review their home equity situation," says Hale. "With the typical home listing price up 40% from just five years ago, many home sellers have a substantial equity cushion. This means they are likely to walk away from a home sale with proceeds that can help reduce the amount needed to borrow for their next home purchase."

However, don’t expect the Federal Reserve to quickly drop rates in the event of an economic downturn. Although mortgage interest rates are technically independent of the Fed’s funds rate, they often mirror its changes.

“The Fed’s going to be very careful not to reignite inflation that has become very sticky,” says Reynolds, who expects mortgage rates to remain high through the end of the year.

• Downsizing

The kids have flown the nest, retirement is approaching, or perhaps a household member has sadly passed away. All of these are valid reasons to sell your house and downsize to a smaller, more manageable property.

• Investing

Your finances are in good shape, and you are ready to invest in a bigger and better property. If this sounds like you, then there is no reason to wait. If your house is in good condition, now is the time to sell.

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