Great News for Homeowners!
Here at Skender-Newton Realty, we understand the hesitation in selling your home due to current market trends. However, currently selling your home may be the best decision for you because of the current market conditions. If you have wavered in your decision of selling your home this season, we have wonderful news for you; today’s home price appreciation puts you (as a seller) in a great spot! Are you ready to attain more money for your property?
Before listing your home, it is important to understand the cause of increasing prices, and one major factor is supply and demand. In any industry, when there are more buyers for an item compared to the item available, prices will naturally rise. In those situations, buyers are willing to put down the extra money for the product or service they desire when options are scarce. Supply has decreased in the housing market, and this has caused prices to go up. With so few homes, buyers have been left with fierce competition. This drives the share of homes selling over the listing price up by 66%. If there is a continued imbalance between supply and demand, home prices are likely to have another strong year of gains. According to the Deputy Chief Economist Selma Hepp, she expects to see an average of a 10% increase in growth for the year.
It will take time for housing supply to increase; experts believe prices will continue to rise over the next 5-year period. The latest Home Price Expectations Survey forecasts home prices to continue to increase over the next 5 years. (See the chart below.)
The graph referenced above shows the rate of appreciation and how it will moderate over the next few years, causing prices to increase through 2026.
Now, if you are working on getting your home on the market, why is this information important? If you are currently a homeowner, continued price appreciation throughout 2022 will give your equity a major boost, opening up an opportunity to move. As a homeowner, equity is an important tool. When you sell your home, the equity built comes back to you in your sale, which could help go towards your down payment! Throughout the past few months, we have witnessed a number of people profiting $80K, $90k, and even $100+K!
If you are curious on how much equity you have in your current home, it’s crucial to team up with a real estate professional. They follow current market trends, and they can help you understand your home’s value when you’re ready to sell. The WORST thing you could do at this time is to try selling your home on your own. Following the advice of a professional will guarantee you more money in your pocket after a sale!
So, you have officially sold your home; what does this mean for your next purchase? Price appreciation is good news for sellers, but it also guarantees your next home will be an investment that will grow in value over time. Trust us, real estate is the best investment.
All in all, if you have had the thought to potentially sell your home this spring, now is the time. Remember, rising home values may be opening up an opportunity to use equity to fuel your next move. If you are curious about your home’s worth, visit HighlandsMarketPrices.com for a free home evaluation or give us a call at (931) 261-9001!