The end of summer is just starting to come into view. This time of year is also when we traditionally see some people who have been putting off their home sale deciding to wait until early in the New Year, often in the hope of even better returns in future.
This is a strategy that has paid handsomely in recent years, as playing the waiting game has been rewarded with ever increasing buyer demand and higher sold prices.
Indeed, looking at our current local market, it would be fair to say that things are still going remarkably well.
So, if you are able to wait a while, why is delaying the sale potentially not the best idea at the moment?
If we look at the wider real estate market across the nation we can see some signs of change from the market conditions we’ve been experiencing for some time now.
Consider these recent press headlines:
“U.S. Home Prices at Least Affordable Level Since Q3 2008.”
“US existing-home sales fell 0.6 percent in June.”
“Sales of new homes sink to an 8-month low even as prices fall.”
“Chinese Reversing Big U.S. Real Estate Buying Spree That Had Helped Boost Prices.”
“Southern California home sales crash, a warning sign to the nation.”
What appears to be happening is that home prices have finally reached the point where, according to AP Business: “Many Americans searching for homes face prices that are climbing at roughly double the pace of wages.”
Clearly this is an unsustainable trend, so the likelihood is that, especially with the cost of borrowing being higher today, plus ongoing Federal Reserve interest rate hikes, we can expect some price correction to take place, plus buyers being in a stronger negotiating position to challenge asking prices that aren’t correctly fine-tuned to market conditions.
Therefore if your circumstances dictate that you can sell this year, there are some new dynamics to carefully consider, in terms of when is the right time for you to list.
As always, we are very happy to take an informal chat with you to discuss current market conditions related to your own situation, so please contact us at The Hyland/Schneider Team on 928-445-2100.