April 4th 2023

With spring upon us, many home sellers could be wondering: Should I sell my home now?

If you’re a homeowner who’s trying to decide whether to list your home this season, here are some reasons why it might make sense to take the plunge now.

Reasons to sell a house now

Even though sellers might not see the insane bidding wars and packed open houses they saw a year or two earlier, make no mistake, the market still favors sellers. Some reasons:

Home prices are still rising

Back in June, U.S. median home prices reached an all-time record high of $450,000, and some home sellers might be admonishing themselves for missing the peak.

The reality, though, is that home prices are highly cyclical, declining during the wintry off-season then swinging upward in the spring. As such, although listing prices bottomed out at $406,000 in January, they’ve been creeping upward since then, reaching $424,000 in March.

Plus, home prices are still up from last year. In February, the median list price was 6.3% higher than this same month last year. And the longer you’ve owned your home, the bigger the gains. Back in 2017, home prices hovered well below $300K (see chart below to get an idea of how much listing prices have appreciated).

As for what home prices will do next—that remains to be seen, although there is plenty of reason to remain hopeful.

“Most other forecasts call for price declines,” says Danielle Hale, Realtor.com® chief economist. “But that’s not what we’re expecting.”

Home equity is at all-time highs

Homeowners who’ve been paying their mortgage month to month should take heart that they’ve likely built up a considerable amount of home equity—the difference between the current value of a home and how much is owed on the mortgage. In fact, recent surveys suggest that nationwide homeowner equity levels have risen to 70%, a near-40-year high.

Let’s presume, for a moment, that you’re one such homeowner, with 70% equity in a house currently worth $400,000. This would mean that when you sell, you’d walk away with $280,000 (minus closing costs and commission, of course). This puts you in a powerful position, in that this windfall could be put toward buying a new home—perhaps in all cash or close to it.

“Now is a good time to be a cash buyer,” says Hale. “If you’re a homeowner lucky enough to have paid down your mortgage considerably or you own the home outright, then mortgage is less of a factor for you.”

In addition to bypassing today’s high rates, all-cash or high-cash offers can help your offer on a new house stand out. It can even give you added negotiation muscle to get a good deal in a market where few buyers can stomach the high mortgage rates. As Hale says, “You might benefit from the lack of competition.”

Curious to know what your home is worth?  Request A Valuation Here

The supply of homes is at rock-bottom lows

It’s hard to remember what selling a home was like before the COVID-19 pandemic. But here’s a reminder of just how different things are today.

“Nationwide, there are just a bit more than half as many homes for sale as were available pre-pandemic,” says Hale.

Part of the reason for this is that people are living in their homes longer; baby boomers who may have downsized in the past are staying put. As a result, homebuyers really just don’t have the selection they used to—and the listings that are up have been lingering longer, growing stale.

This means that any new listings are bound to get a lot of attention, which bodes well for any sellers dipping their toe in the market.

More buyers will get out there as the weather warms up

Whatever mortgage rates do, buyers tend to come out in force in the spring. So you’ll get a lot more interest in your home, particularly from people who might be more serious about buying. In fact, Realtor.com has determined that the very best time to sell for 2023 is the third week in April, when listings are expected to receive 16% more views than in a typical week and fetch $8,400 more per sale.

This is particularly true at the Shore, as many buyers want to get into their new Shore home in time for summer. 

There are some caveats to this approach, however. If there are more house hunters out on the market, there will be more homeowners deciding to list, so you’ll have more competition.

Nobody knows what mortgage rates will do next

It’s impossible to accurately predict whether mortgage rates will go up or down—and if they go up, when or by how much. 

In other words, don’t get yourself into a situation where you’re delaying life decisions based on where the market might be expected to go. Base your decisions on the here and now—and your own needs.

It’s the right time for you, personally

No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change.

There are various situations in which it might not be the right time to buy or sell, market-wise; but it is the right time, given a buyer’s particular situation or needs.

In all cases, the decision to move and the home that you end up buying is an emotional decision. It’s not usually based on numbers on a spreadsheet. 

Bottom line?

Don’t hold off on important life decisions purely because you’re trying to time the market and wait for a better deal, or because can’t sell your home for as high a price as your neighbors down the block did last year. The right time to sell is not just about money.