Feel like the real estate market is exploding in a way you’ve never seen? You’re not alone. The market has grown so much in the past couple of years, to the point that even homeowners who planned to stay put are thinking that they need to get involved. The good news is that this year might be a great time to do so. If you’re wondering, “Should I sell my house in 2022?” we’ve got a few things you should know.
What Is the Real Estate Market Like?
It would be difficult for the 2022 real estate market to beat the growth of 2021, and the proof is in the numbers. The Federal Reserve Bank noted an increase in median home sale price of about 20 percent for the country from the beginning of 2021 to 2022, although certain markets saw even more growth. In 2022, the market is cooling a bit. Rising home prices and interest rates have put the squeeze on typical home buyers, which has led to an increase in purchase by investors. The National Association of Realtors notes that the share of homes bought by institutions has risen to about one in seven residential sales.
What’s Happening to Mortgage Interest Rates?
Since reaching the bottom in December 2020, mortgage interest rates have nearly doubled. To slow inflation, the Federal Reserve increases funds’ interest rates, which typically leads to rising mortgage interest rates. Rates on a 30-year fixed-rate mortgage dropped to an historic low of 2.68 in late 2020 and rose to 5.23 as of May 2022. Interest rates affect monthly payments, which can limit the buying power of people looking for a residence. It’s important to note that cash buyers and investors may not be limited by mortgage interest rates in the same way. While planning out the best time to sell a home, it’s still a good idea to keep an eye on rates.
Are Instant Buyers Interested in Your Home?
The rise of instant buyers is one way to explain the continued growth of the real estate market. Since these buyers may be looking for a future investment, they often make different choices. You should evaluate the type of buyer you are most likely to get when you list your home because you don’t want to invest a lot of money into repairs or upgrades for a buyer who won’t pay more for them. Be sure to look at the local competition. Too many homes on the market might mean that you don’t get the sale price you’re looking for. In many markets, however, the housing supply is still very low.
Are You Ready to Sell?
Although you may not be able to decide the perfect time to sell a home, there are some things that you can do. If you’re hoping to sell to a traditional buyer, you will need to complete a few tasks:
- Depersonalize the style.
- Make necessary repairs.
- Perform upgrades to improve the curb appeal or make the home move-in ready.
One of the first things you should do is shop around for a real estate agent. You may be able to find agents who help you keep costs down or increase your potential profits. Based on the data and other factors, 2022 could be a wonderful time to sell your home. At Marketplace Homes, we help homeowners like you to sell or buy a home. Contact us to learn more about your options or to get started on your real estate plans.