How do I know if it is a good time to sell?
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The age old question in real estate. Much of the commentary we see in real estate hinges around the right or wrong time to sell a property. However, there are always opportunities to take and times to have restraint depending on your specific goals.
Broadly, we can assert whether the real estate market is hot or slow and commanding high or low sale prices. This is a good start for any would-be seller. Factoring in current interest rates and where you are in your selling and next buying journey would usually come next.
Timing that is unique to YOU
When it suits you best
A great approach to take is to separate yourself from the crowd - sell when it suits YOU best. The benefits of selling and moving into a new home, enabling better lifestyle choices, and housing your family more comfortably might outweigh any short-term negative financial concerns.
As the experts cannot predict the future (well, we can…) taking a step forward is usually more productive than sitting back and waiting, especially if you have compelling reasons to sell.
Move up markets
A move up market can be where timing, timing and timing, might for certain sellers, trump location, location and location.
A move up market in real estate terms can mean a period when one can sell a home for a loss and buy a much more expensive home at an even greater reduction from its former value. Think about it this way - if the entire market has dipped it is still an equal playing field.
Ask us to keep you informed for when more expensive homes, in general, are dropping at a higher percentage than lower priced homes. However, you and you alone are responsible for deciding if and when to “move up.” As you look at the real estate market and consider moving up, think about the following.
What your present home should sell for and how much equity you have
What the price of your target property is and does that represent an opportunity worth taking
How much of your decision is based upon economic versus lifestyle considerations
How long are homes taking to sell in your price range, as well as in the higher priced range you are considering
What the tax considerations of buying and selling during the same timeframe are Ask your tax specialist or financial advisor
Whether you should sell your home before you move up, or if there is an opportunity to buy a more expensive home, which has dropped dramatically in price that you do not want to miss out on
Broad real estate market indicators
Mortgage rate activity
History and real estate trends show us that sales can often correlate with mortgage rate activity. When rates are low our mortgages look much more favourable. However, this also means that other buyers in the market will be thinking the same.
We’ve seen record low interest rates as governments and banks try to stimulate growth, this has produced record activity in the real estate market. Guess what? This drove prices up too as the demand created favourable conditions for sellers.
We’ll always defer to your unique situation and analyse the perfect timing for YOU.
When does the real estate market favour buyers?
A buyer’s market means that there is more inventory (homes) than there are available buyers. This gives those looking for homes a little longer to search and more options to choose from. Normally when the market is in favour of buyers, sale prices remain flat or are even driven down as homeowners compete with each other to sell their homes. When looking at housing market data, you can determine the market to be in favour of buyers when the sales-to-active listing ratio is below 12%.
When does the real estate market favour sellers?
Conversely, a seller’s market is determined to be one that has lower inventory (homes) than available buyers on the market. This means buyers have less choice available, more competition for the home that they wish to buy and they are often faced with rising prices. When the market is in favour of the seller they also tend to have more negotiating leverage. Typically, this is indicated when the sales-to-active listings ratio is at 20% or higher.
A balanced market fits in the middle.
A balanced market that is good for both parties occurs when home supply and demand from those looking to purchase is around the same. The middle ground for this is between the 12% and 20% sales-to-active listing ratios that determine whether the market is in favour of buyers or sellers.
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