Best Time to Sell a Home in 2022
- Troy Grimes, REALTOR®
- Jan 3, 2022
- 3 min read
The boom in the U.S. housing market continues. Thinking of selling a home this year? Read on for advice on when's the best time to sell. #sellersmarket #realestate #homesales #actnow
Prices Up. Supply Down.
In 2021, the U.S. experienced the hottest housing market in our nation's history. Unless you've been under a rock the past year, you've heard that home prices have risen and inventory levels are insufficient to demand. In a recent news article, the National Association of Realtors® (NAR) reported that as of November 2021 month-end, home prices were up double-digits, year-over-year, at the national level.
"The median existing home sales price rose 13.9% year-over- year to $353,900." - December 22, 2021 news article published by the National Association of Realtors®
Locally in the Raleigh, NC region, the Triangle MLS reported November 2020 to November 2021 year-over-year median home sales price was up 21% to $369,000; average sales price rose 18.5% to $415,300. Average # of days on market was down 42.1% to 11 days; with inventory down 39.9%. The seller's market of the past few years continues in to 2022, fueled by favorable mortgage interest rates, with a large pool of qualified home buyers on the hunt.
What this Could Mean for Home Sales
Home prices in many areas of the country have risen. The greater Raleigh NC market has experienced unprecedented double-digit year-over-year gains. As home prices continue to rise, will the boom in sales continue? It depends. There are concerns over inflation of home prices out-pacing the rise in wages, that could price some prospective buyers out of the market. And historically, when our economy experiences inflation, the Federal Reserve tightens monetary policy by increasing interest rates. The Fed has already hinted at multiple rate increases in 2022. Continued increases in home prices, combined with likely increases in mortgage rates, along with stagnant wages, would reduce buying power for consumers. The result is some would-be buyers could be knocked out of the market.
"The Federal Reserve is anticipating multiple rate hikes in 2022 as the economy strengthens and concerns about inflation remain central to monetary policy." - Eric Rosenbaum, CNBC Analyst, Published December 30, 2021
What this Means for Prospective Sellers
There's never been a better time to sell a house in U.S. history. And when it comes to home prices, don't expect prices to go down; yet don't expect year-over-year double-digit increases to continue either. Act NOW if you plan to sell your home in 2022. Formulate an action plan to take advantage of the strength in the unprecedented seller's market, while it lasts.
3 Steps to take right now:
Consult an experienced, local, trusted Realtor®.
Don't know one? Ask for a referral from a friend or family member who recently bought or sold a home.
Have an exit strategy from your current home, BEFORE you list it for sale.
Begin prepping your home for market now.
Compelling evidence suggests the housing market could experience some cooling by mid-year. This could mean a return to some balance in the market place, with homes receiving fewer offers; and listings experiencing a marked increase in number of days on market. After the wild ride of 2021, my crystal ball is in the shop for repairs, and I'm told parts are on backorder, due to supply chain issues brought on by the Pandemic. Yet my prediction is that any home seller looking to cash in on the hottest real estate market in our nation's history would behoove themselves to take steps now to get their home on the market and sold during the first half of 2022.
About the Author: Troy Grimes is an actively licensed NC real estate broker, and the principal Member-Manager, and Broker-in-Charge, of Troy Grimes Realty, LLC. His firm specializes in general brokerage home sales in the greater Raleigh, NC region & surrounding areas. You may connect with Troy on social media including LinkedIn, Facebook & Instagram @TroyGrimesRealtor. To request his complimentary pre-marketing prep list for sellers, email Troy at homes@troygrimes.com
Comments