If you are thinking of selling your house, you are probably wondering if now is a good time.
The majority of real estate experts say that the short answer is yes — now is a great time if not the best time to sell. Many consider that the real estate market has reached its peak and that we are about to witness a shift.
National data shows that home sales are dropping significantly, and it’s starting to reflect on prices.
Real Estate Market Trend:
There’s no denying that the housing market has been in favor of sellers in the past couple of years, but with the current economic downturn, this industry will not be spared. The U.S. officially entered a recession in the summer of 2022.
The market is undergoing a shift this season as demand slows, and the amount of houses on the market steadily grows. As of August 2022, amid record inflation and higher interest rates, we are starting to see a slow-down in the market and expect growth to slow sharply through 2023.
Soon selling a property will no longer be easy and profit margins will decrease.
The Impact of Inflation on the Real Estate Market
Generally speaking, when inflation rises, so do the prices of homes and other real estate assets. However, the increase of mortgage rates tends to put pressure on home buyers and reduce demand for real estate as debt becomes more expensive.
As the demand drops, and the supply remains the same, there will be a surplus, and the price of your asset will go down.
Bottom line
With continued supply shortages and high buyer demand, now is the best time to sell your home. And with interest rates on the rise, it may be better to sell sooner rather than later — if rates spike much more, more prospective buyers will retreat from home shopping..
