Three reasons why Q4 is the right time to sell instead of waiting for 2023.
Are you curious whether or not you should sell your home in the fourth quarter of 2022 or wait until spring of 2023? This is one of the most common questions we’ve gotten lately, so if you’re wondering too, you’re not alone. To help with this decision, here are three reasons why you should consider selling your home today instead of waiting:
1. Interest rates will cause prices to drop. What we’ve found is interest rates have gone all the way up to 6.5%, sometimes over 7%, and we don’t know for sure where they’ll go in the future. However, the odds are pretty high that they’re going to stay right around these numbers for quite some time. That will weed out some of the buyers who would be interested in buying your home. Therefore, prices in a few of the most popular areas will come down a little as we go into the winter before we get the ramp-up of the spring.
2. Headlines in the news don’t reflect reality. These flashy articles are causing confidence issues across the board. However, if you look at the true closing and active activity, you see there are a lot of people in the market today. In fact, UBS (a big investment bank) conducted a consumer intention survey that showed 44% of the people who participated wanted to buy a home in the next 12 months, regardless of interest rates.
3. Inventory is still considerably low. Typically, when we consider a buyer’s market, we have several thousand more homes on the market here in San Diego. We’re hovering in that high 4,000 range of homes that are active on the market, even though this year we started with a much lower number. Under 5,000 homes is still a neutral balance, giving a lot of sellers the room to negotiate with the buyer and not lose their confidence.
These are just a few tips to help you win in the San Diego real estate market today. If you want to sell your home in 2022 or 2023, give us a call today, we would love to hear from you.