Is It Too Late to Sell My Home In 2022?
As 2022 enters the final few months, you may be wondering about making your move now to sell a home. "Can I still sell my home?" "Should I sell in 2022 or wait until the spring market of 2023?"
In every situation, this is a personal decision. If now is the right time for you and your family to move, there's no reason not to enter the market by listing. Some sellers, though, have flexibility and want to ensure they are selling at the ideal time when they can get the best price for their home or the fastest offer.
Let's take a closer look at the market and overall conditions to get a better idea if now is the right time to sell.
What’s to Come in the Mortgage Market
There is no doubt we are entering a bit of a period of the unknown in real estate. For the last few years, most areas have seen a significant amount of growth in home values. That's thanks to fewer people moving, with less overall inventory on the market. On the other hand, mortgage rates have been low and slow to move. It was pretty easy to obtain a loan with a decent credit score and income. In many ways, the recent climate has been that of a seller’s market, with quick offers and competitive bidding, even selling over the list price in some situations. That is likely about to change.
Here are some things to expect about the near-term future:
- Home prices are likely to stay high but will "soften" slowly. Experts do not predict any type of crash occurring in the coming months that would see a dramatic drop in home prices.
- Mortgage rates are likely to become more stable but at higher levels then a year ago. That means, for sellers, some buyers will be holding off purchasing now because of the added cost.
- Supply issues — limited homes on the market — are likely to continue, though some areas are seeing an increase in inventory.
Mortgage Rates Will Impact Buyers
Home buyers often need the lowest interest rate possible to make the purchase of a home affordable. There is evidence that interest rates are a big factor. Banks will likely continue to make changes to interest rates charged to home buyers.
What does that mean for today's home seller? Monitor mortgage rates both for yourself, if you plan to buy a home now, and from the point of the buyer. Buyers may be fewer, and it will take longer to sell a home as interest rates climb.
What to Expect If You Sell in 2022
Many experts believe that the second half of 2022 will be more of a return to the normal of pre-pandemic periods. It is during this time that homes will take an average of 60-90 days to sell, offers will be conditional and competitive bidding unlikely unless the home is extremely well priced.
Selling now could be important if you want to get the best price for your home. Home prices are no longer experiencing a rapid increase and in many areas, price reductions are hitting home listings. However, we are still at record high prices for the Okanagan so if you are cashing out of the market or buying down there still couldn't be a better time to sell.
Home listings are retreating too. In the summer months, many areas saw significant growth in the number of homes listed for sale. Inventory became a bit more flush, providing more opportunities for buyers. For sellers, that means more competition. However, that’s turned around a bit. With fewer homes listed in the fall months, that could mean less competition and, as a result, a faster and potentially higher valued sale if you sell in 2022.
The Unknown of 2023
So, should I sell my home in 2023? Some people may feel the desire to put off their home’s sale until next year. Doing so could be met with more uncertainty, though.
Inflation could become an ongoing factor, as could a recession. A drop in home prices in the coming months to years is highly probable. While there is some predictability in what is likely to happen in 2022, there are a lot of unknowns about what could happen by next year.
A key factor is home affordability. With rising interest rates and high home prices many buyers are not able to qualify for the same amount that they would have been able to a year ago. The result is that homes are becoming less accessible to many people, and that could become more obvious in the real estate market during the first portion of 2023, if not sooner. Buyers will certainly reduce their expectations and maybe put off a purchase while they continue to save money but this will certainly put downward pressure on home prices if inventory rises.
What’s It All Mean to You?
As a homeowner hoping to sell, there are a few things to consider. First, the real estate market is calming, returning to more “normal” conditions as it was prior to the pandemic. That’s a good thing overall for sellers who price their homes right and don’t anticipate huge bidding wars. Housing availability is still low, which means selling your home in 2022 could mean getting somewhat of a boost in value if you are in a competitive market.
Overall, your best bet is to have a comparative analysis of your area by your agent. That's going to give you a far better perspective of what's to come. For many property owners, there's no benefit to putting off the sale of your home right now. Instead, it's a good idea to take advantage of the current conditions.