The market has shifted a lot over the last year. Why is now a good time to sell?

We know that many potential sellers have been 'watching the market' and waiting to see how all the changes since 2020 pan out. We're here to tell you: stop waiting and act!

The opportunity window is starting to close!

The pandemic launched a home-bying spree of epic proportions. A struggling economy sent mortgage rates to low levels while many Americans sought out bigger, better homes [in which to] ride out the health crisis. A tidal wave of demand was met with a sorry amount of housing supply. - homelight.com

Over the last two years, we have watched incredible changes in the housing market. A shifting economy and hard-to-anticipate changes in supply and demand, interest rates, and buyer activity have left the real estate market reeling.

With so many changes happening, it's easy to see that the market is cooling, but competition is still high compared to 2019, and now is the perfect time to take advantage before the next big shift.

Inventory continues to rise.

Part of the increase in competition, rising sale prices, and the intensity of the sellers' market in the last year has been a response to low inventory. As more and more houses are coming onto the market, the competition for each property will decrease.

What does that mean for prospective sellers?

If more and more houses are coming onto the market, why should I add mine to the list? The short answer is: to beat the rush.

We have seen inventory rise in the market recently, but there is still high demand to live in the Pacific Northwest, including from out-of-state buyers with deep pockets. Even though your property won't be the only one available for interested, qualified buyers, waiting six months or a year to sell will mean there is even more competition for sellers, which means less among buyers. If you are ready to sell your house but have been waiting, acting now could mean more buyers looking at the house, more proceeds for you, shorter time on the market and in contract.

Interest rates are climbing, and they won't stop soon.

Now that the economy is picking back up, businesses are re-opening and many sectors of the market are gaining momentum. To quell inflation and ensure the market continues to rise, the Federal Reserve has planned interest rate increases for consumer loans, like mortgages.

Why do buyer interest rates affect my selling plans?

Buyers looking for a home right now will still have low interest rates compared to pre-COVID, but the more those rates increase, the more their buying power decreases.

With many pandemic restrictions ending in the new year, the Federal Reserve has announced that interest rates, lowered to help manage the economic impact of lockdown, will increase quickly and soon, with the first of at least three national increases happening now.

As a seller, it is important to get as many qualified buyers in your area and price range to see your property as possible, for the best chance of selling quickly and for a higher price. Even if there isn't a bidding war, multiple offers creates competition, and the demand will benefit your bottom line.

When interest rates increase, buyers' monthly mortgage payments will increase, too. That means a buyer whose monthly budget has remained steady will need to purchase a lower cost house than they could have last year. As buying power decreases, it gets more difficult to maximize the equity in your house and your final profits from a sale.

Home prices boomed last year, and that boosted your equity.

If you've owned a home for the last few years, you are in a great position to maximize your equity and make the most from your sale.

How has the market shift affected my home value?

Home prices have gone up a lot over the last two years, and that likely means that your home's value has increased. Maybe even more than you realize.

One of the biggest reasons to sell right now is to maximize the equity your house has gained over the recent boom. With record sales prices, competitive contracts, and unparalleled buyer demand, many homeowners don't even realize how much more their home is worth than they paid not that long ago.

Even if you aren't yet sure you're ready to buy, or you're hoping to lock in a low interest rate to trade up for a bigger home or in a different area, now is a perfect time to sell. Take strategic advantage in the market changes that make your house worth its highest price to date!

So what now?

These increases and shifts might seem scary, but the truth is that the market right now is in a great position. We are still seeing record-breaking sales and having great results with our marketing for listings. We just don't want prospective sellers to wait too long and miss a golden opportunity.

With supply costs and shipping delays still holding up some repairs, and the market cooling off quickly, even those waiting to sell in order to make renovations or repairs may want to reconsider their timeline.

We are always happy to provide a comparative market analysis for your house, discuss the value in your property and your goals for a sale, and talk honestly about the best course of action to reach your goals. Don't wait! The only bad time to reach out is 'later'!