In our current complex housing market, homeowners with dreams of moving to a new place are asking the universal question, “Should I sell my house now or wait?” Making the decision to sell a house is hard enough, but knowing if now is the time to list it is a whole other level of calculus, especially when the housing market feels unpredictable. While the market has a significant impact on the sale of your home, it’s not the only factor to consider. It’s also important to evaluate your own personal situation and reasons for selling. To provide you with some guidance, we’ve consulted with top real estate experts and researched the best ways to determine if now is a good time for you to sell your home, or if you might benefit from waiting. According to Fannie Mae’s most recent Home Purchase Sentiment Index (HPSI), 67% of consumers reported that it’s a good time to sell a home. 17% said it was a good time to buy a home, up from 14% the month before. The full HPSI index, which tracks consumers’ housing-related attitudes, intentions, and perceptions, is up 6.2 points year over year. Mark Palim, vice president and deputy chief economist at Fannie Mae Mortgage says mortgage rate optimism is increasing, with a survey-high share of consumers anticipating mortgage rate declines over the next year. “This significant shift in consumer expectations comes on the heels of the recent bond market rally and an already-significant downtick in 30-year mortgage rates.” Palim wrote in the index report. “A more optimistic rate outlook among consumers may signal an expectation that home affordability pressures will ease in 2024.” Here’s a quick look at current market conditions: You could base your decision to sell on market conditions or the fact that 67% of consumers think the timing is right, but a decision like this is not something a homeowner can determine from national surveys and interest rate activity alone. In the following sections, we’ll provide two sets of common scenarios to help you decide if now is a good time for you to sell, or if you might want to wait. Typically, you should consider selling now if the circumstances provide favorable selling scenarios. Each scenario in our list below can count as a positive point toward your decision to sell. The right situations might include: Historically, sellers will find the greatest success when interest rates are low and more buyers are on the hunt. So, today’s higher rates will likely play a role in your decision of whether to sell your house now or wait. As of January 2024, average mortgage rates for a 30-year fixed loan stood at 6.6%, down from 7.19% in September, according to the Freddie Mac Primary Mortgage Market survey. While the rates may seem high compared to the pandemic-era historic lows we witnessed, the current rate is actually still under the long-term average of 7.74%, and far below the October 1981 rates when they peaked at 18.63%, according to Freddie Mac records going back to 1971. When supply is low and demand is high, selling your home can be more profitable. The total inventory of for-sale homes in the U.S. remains relatively low. At the start of 2024, the housing inventory was estimated to be at 3.2 months of supply. A 6-months supply is representative of a balanced market. National Association of Realtors data shows that the total housing inventory is about 14% lower compared to a year ago, but more inventory is expected to appear on the market in 2024.Is now a good time to sell my house, or should I wait?
When to sell a home (9 common scenarios)
1. If mortgage interest rates are low
2. If housing inventory is low
