It’s not always a good time to sell off your real estate investments… but it could be right now! Find out why…
If you’re thinking about selling your home, then it’s worth considering what might happen in the next few years.
The housing market is unpredictable, but there are some factors that could make this a good time to sell your property.
Here are seven reasons why you should consider early 2022 as an exit date for your home.
1) Covid-19 Has Been Good for Property Sellers
As Covid-19 knocked the business people for six worldwide, real estate investors have been among those lucky rare species that have gained rather than lost in this pandemic.
Do you know why? Because homes have sold (and are selling) faster than ever in the year 2021.
During this pandemic, the real estate market has become red-hot and the demand among buyers of property shot up.
So, if you own some type of real estate investment, or if you fix and flip, you may consider selling it now.
2) It’s a Seller’s Market Until 2022
There’s absolutely no doubt that real estate is a seller’s market at the moment, and this will continue into 2022.
Every survey and statistics chart goes to prove that!
For one, Zillow recently strengthened its long-term expectations for home value growth, from an initial forecast of 11.7% through August 2022 to a revised forecast of 13.6% through September 2022.
Since 2020, the number of homes sold has gone down while the number of interested buyers and new mortgage applicants has gone up. And these changes have helped bring about a seller’s market (and faster appreciation rates).
2021 has been a strong seller’s market, and the market of early 2022 shows the same promise and potential because people ARE buying and home values ARE continuing to rise throughout the next year.
But with changing times there’s no guarantee that the same momentum will continue into the following years.
So, think about it and act quickly!
3) Potential to Ask for a Higher-Than-Usual Price
The thing is that ever since Covid-19 hit the world, the supply of homes for sale has been at a very low point.
Black Knight stats show that early in 2021 there were 40% fewer homes on the market than at the same time in early 2020.
The reason for the low supply was that,
- people were locked inside their homes, and
- most sellers weren’t willing to do a showing for potential buyers in the Covid-19 times.
So, any home that was listed was snapped up quickly.
Now, as 2021 is approaching its end and everything is getting back to normal, the supply is slowly increasing.
This will continue into 2022, slowly adding to the number of homes for sale, and making your home less competitive.
BUT… you still have time to use the ‘low-supply’ leverage and ask to ask a higher price for your property for the time being!
4) Interest Rates are Low… VERY Low
One of the main reasons buyers are desperately looking for homes and willing to pay higher prices is that interest rates have been at an all-time low since the start of the pandemic.
The low interest rates mean low mortgage costs for buyers and that’s why you can expect them to queue up and bid for your house…
That is if you sell before the end of 2022.
That’s because the stats show that the interest rates will NOT remain low.
In fact, there’s already been a slight rise in them.
In the US, experts predict interest rates to rise above 3% around the middle of next year.
In Canada, the mortgage rate is also expected to increase by 0.5 – 0.75% by the end of 2022, and as high as 3% by the end of 2023.
So if you wait until the end of the year, this benefit will be over as rates will be high again!
5) Future Foreclosures Will Lower Demand
When the coronavirus pandemic hit, the US government ordered relaxation on foreclosures.
This was because people were losing their jobs and their incomes slumped, which made it difficult for them to pay their mortgages.
But as of 2022, these relaxation measures will be removed and a whole lot of people will be losing their homes by the end of the year.
Those properties will be back on the market then.
So, with so many upcoming foreclosures, the market will have a higher supply of homes in a year’s time.
Higher supply equals lower prices, right? So prices are expected to fall or at least grow at a slower rate than before.
6) Old Citizens’ Properties to be Listed
Did you know that senior citizens currently own about 21 MILLION homes in the United States?
So, what’s the point?
The point is that those seniors will also be losing (or moving out of) their homes in the coming years for various different reasons.
Like, failure to pay their mortgage, moving in with relatives, death, using the money to fund a better quality of life, etc.
And all those homes will be listed back to be sold.
That’ll again increase the supply and push the prices down. Bad for you as a home seller…
7) The Great Reshuffling is Almost Over
The COVID-19 pandemic changed how people felt about their homes and where they chose to live.
Stuck at home, people started noticing what made them happy — and unhappy — about their living situation. Buyer trends shifted.
Working remotely became the norm, and employees started to expand their home search to include areas farther from the office.
Market data reveals that buyer demand for suburban areas increased. Many moved to the suburbs for more space and better affordability.
But this shift is slowing down. Most people who wanted to relocate have already done so, and as such, buyer demand is expected to slow down.
So, now is the time to take action and sell your property for top dollar.
And, if you’re looking for an easy way to sell your property online, consider listing for free on AQRE Home!
You’ll get access to the site’s unique audience of users across North America, and premium services like property marketing, built-in chat between you and the buyer, and more.
Don’t wait for the market to cool down, list now while it’s a seller’s market and win!