3 Reasons to Sell Your Home in 2022
To say that it’s a seller’s market right now would be an understatement. Ever since mortgage rates dropped to historically low levels in 2020, buyers have been clamoring to purchase homes. If you list your property in 2022, there’s a good chance someone will bite.
But that’s not the only reason to consider selling in the new year. Here are three more that may prompt you to list your home.
1. Home prices are super high
The Federal Housing Finance Agency reports that U.S. home prices were up 18.5% during 2021’s third quarter. Chances are, home prices will remain high well into 2022. That gives you, as a seller, a prime opportunity to make a decent chunk of money once you list your property.
2. There’s not a lot of competition
We’re starting off the new year with a housing market that’s seriously lacking in inventory. The result? If you list your home, you probably won’t have much competition. That could set the stage for a quick sale at a price you’re happy with.
In fact, you may find that due to limited inventory, your home winds up in a bidding war. That could leave you with a much higher price than your initial asking price.
3. You may no longer need to pay a premium for office proximity
You may have purchased an expensive home back in the day to cut down your commute time to your office. But at this point, many people have been working remotely for almost two years, and companies are starting to reconsider whether employees actually need to show up to an office.
If you’re granted permission to work remotely on a long-term basis, you may not need to carry such a large mortgage for a home that’s in a prime location. Instead, you could sell that home and buy a more affordable one elsewhere.
Ask yourself this question before selling your home
Clearly, there are plenty of compelling reasons to sell your home in 2022. But before you do, ask yourself: Where will I go next?
If you’ll be selling a home and downsizing to a smaller space, or moving to a more affordable city or suburb, then listing in 2022 could make a lot of sense. But if you’re thinking of selling your home to buy a comparable or larger one nearby, then you may run into the same issues buyers today are struggling with – high prices and limited inventory. In fact, if your goal is to upsize, you may find that you’re unable to do so, even if you do make a nice profit on the sale of your own home.
This isn’t to say that listing your home in 2022 is a bad idea. Quite the contrary – it’s still very much a seller’s market. But before you list, think about how well you’re apt to fare once the sale of your home creates a scenario where you’ve become a buyer.
A historic opportunity to potentially save thousands on your mortgage
Chances are, interest rates won’t stay put at multi-decade lows for much longer. That’s why taking action today is crucial, whether you’re wanting to refinance and cut your mortgage payment or you’re ready to pull the trigger on a new home purchase.