Seller Questions This Winter

Seller Questions

It is hard to argue that the real estate market did not change this season. That is because seasonality in real estate, higher prices, and higher rates have shifted the market. However, a switch this drastic in an industry will lead to some tough questions to answer going forward. Since buyers are continuing to change their behavior due to previously mentioned factors, seller questions have arrived. Here are some of the biggest seller questions that are being asked – and how the data helps answer them. These seller questions are being answered in hopes to allow some confident decision making.

Should I Wait To Sell?

Even with an increase in the homes on market at any given time in 2022, inventory is still low comparatively. Seller’s still have an upper hand in this market. However, the market is getting more neutral. The graph displayed below provided from Keeping Current Matters and NAR (National Association of Realtors) shows the inventory growth. On the short-term, we are extremely happy to see this increase. However, on the long-term, we are still short on supply. Using this data from NAR puts into perspective how far we are from a technical ‘buyer’s market.”

Buyers have gained some ground in the hunt for houses. The room for negotiations in the housing market has increased, but you haven’t missed your time to sell. A well-cared for home, listed at the correct price, and in the right neighborhood can still sell in days in this market. Listing now could be a beneficial time for sellers, as others hold off selling until after the holidays. Rates will likely only head higher, so waiting to sell could hurt your price or buyer chances.

Are Buyers Still Buying?

A seller question that is commonly asked in 2022 is are buyers still buying houses? Fortunately for you, the answer is yes. While the crazy market we saw recently is likely over, the market is still hot but cooling. Some buyer demand has disappeared from the market, but that is to be expected after historic transactions. According to Forbes,

“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 homebuying 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.”

 Final Of The Seller Questions

One valid seller question we are getting is can I afford to move into my next home if I sell mine? However, most sellers do not consider this: you have a lot more equity in your current home than you might realize. Homeowners gained significant equity due to the pandemic housing market. The increase in equity can help with the affordability of buying your next house. With mortgage rates up significantly since last year, it will be important to have this extra liquidity when moving to your next home. According to Mark Fleming of First American:

“. . . 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.”