Selling in a High-Interest-Rate Market

Selling in a High-Interest-Rate Market

Many homeowners are on the fence about whether it’s a good time to sell due to the steep and rapid rise of interest rates. However, the Federal Reserve has indicated a reduction in the fall.

Is now a good time to sell?

Homeowners continue to build home equity. In fact, recent data shows that despite the shift from a booming seller’s market to a more temperate one, 48.5 percent of homeowners are equity-rich, meaning they have at least 50 percent equity in their homes, numbers which have not been seen in several decades.

Therefore, many homeowners could be sitting on a lot of equity due to the rapid price increases over the last two years. If you’re a homeowner and believe you have a fair amount of equity, this is a great time to speak to your real estate agent about potentially selling your home.

Many sellers have a more positive attitude toward listing their homes and outnumber others who say it is not an ideal time. While this gap is beginning to close compared to last year’s numbers, 59 percent of consumers believe that the housing market favors sellers that pricing will continue to moderate.

Although buyer demand has waned a bit, it is still a highly competitive market making it more favorable for sellers. As long as your home is priced correctly, it will sell quickly. Therefore, if you have been considering making the leap to list your property, this may be an ideal time.

What is your motivation to sell?

Your region’s current supply and demand levels may sway your decision on whether it’s a good time to sell your home or should take a wait-and-see approach. There are several reasons why homeowners choose to sell. If you have contemplated putting your home on the market, before making your decision, determine what your motivation is for selling. Whatever your answers are, they’ll help you figure out what your next step is.

Don’t let the current high-interest rates dissuade you from selling. Even with interest rates on the rise, inventory is still historically low, and buyers are actively pursuing purchasing a home. Be sure to consult with your real estate agent to find out more about selling your home and how to procure the most amount of money in the least amount of time.