Some homeowners are wondering if this is the time to sell. With low inventory, they can surely benefit from great prices, less inspections, and more flexible closings. Yes, some may wonder if this is truly a good time. Here are some reasons to sell your home in 2023.
Most people sell their homes because of life circumstances, and rightfully so. Trying to make decisions and trying to “time” the real estate market create more indecisiveness and can potentially hamper your quality of life.
According to Keeping Current Matters, 21% of homeowner sell their home to be closer to loved ones. This is different from the same survey in 2019 when the National Association of Realtors reported that 15% of homeowners sold because their house was too small and 14% was to be closer to family and friends.
SELLERS MARKET DUE TO LOW INVENTORY
Another good reason to sell your home in 2023 is that it’s a Seller’s Market. This means that home sellers have the advantage when putting their homes up for sale. This is because of the extremely low inventory nationally and in Northern Virginia.
Nationally, the month’s supply is 2.6. This means it will take about 2.5 months for the homes currently for sale to be sold. In Northern Virginia, the month’s supply is at 1.2. This means the inventory is much more limited and this puts home sellers at an advantage.
BUYERS AREN’T SCARED OF MORTGAGE INTEREST RATES
Finally it seems that mortgage interest rates are not taking major turns upward or downward. The rates have been hovering around 6.5% for over a month now. Most analysts predict that by the end of 2023, rates will remain in the 6.5 percent range. This is a good sign of stability and makes this a good time to sell your home in 2023.
So far this year, the sticker shock of new normal of the 6.5% interest rates have not deterred home buyers. First-time buyers are no longer scared by the 6% rate while others remember when rates were around 15%. Demand for homes to buy still outpace the amount of homes for sale. Renters escpecially see the advantage of buying their own home versus paying someone else’s mortgage. This is why sellers are rest assured to get a fair price for their home. The difference is the rate of appreciation from last year summer. During the pandemic, homes were appreciating up to 20% in one year. Now, the appreciation in Northern Virginia is around 2% compared to last year.
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NEED FOR DOWNSIZING
Home owners who are thinking of downsizing are also in a good position to sell their home in 2023. Whether children have left the home or it’s an effort to minimalize lifestyles, needing less space to live makes it a good time to sell your home in 2023. Typically, downsizing also reduces the cost of the home so giving up a 4% mortgage rate to then take on a 6% rate when purchasing a new home is easier. Most buyers feel comfortable securing a new home and then waiting to refinance in the coming years, if rates go down even further.
THINKING OF SELLING YOUR HOME?
If you’re thinking of selling your home, it’s important to start with good information like a Comparative Market Analysis (CMA). This is an important tool in getting a great estimate on how much your home would sell for. Real estate specialists compare your home location, features, amenities, etc. with similar homes that have sold recently.
HOW TO REQUEST A CMA
If you have a real estate agent or have worked with one in the past, you can contact them and request a CMA. At Home Estate Realty, we produce monthly CMA’s for all our past clients. If you’re not working with an agent, a great place to start is HERE. We provide this service FREE of COST to anyone interested with no obligation.
Northern Virginia remains a great place to own a home. Whether you own your own home and thinking of selling or you want to buy a home,