Selling a house is always a big task to take on, and it's important to know what to expect. There are some things that never change when it comes to the sales process, but the current market dictates other components. Being prepared can give you peace of mind and an idea of what smart choices to make.If you are interested in selling a house this year, you may be unsure what the future holds. But Vectra Bank is here to give you an idea of what the industry will look like in the coming months. Here are some basics to understand when it comes to putting real estate on the market in 2023.
What to Know About Selling a House This Year
Selling a house requires support from real estate and financial professionals.
Should I sell now or later?
One of the most important and confusing choices you have to make when considering selling your house is when to put it on the market. Knowing when to list property is not a simple conclusion to come to, and many economic, financial and personal considerations need to be taken. Think about:
- Average home prices in the area.
- Buyer demand.
- Current and projected interest rates.
Keep in mind that once you sell your house, you are likely to become a buyer yourself. Because of this, take a look at the market from both perspectives and prepare yourself accordingly.
What is the 2023 market?
Current market trends impact real estate sellers in a plethora of ways, including how long it will take to sell the house and how much the property is currently valued. The past two years have been what is known as a "seller's market," meaning that it was relatively easy for a seller to find a buyer. House inventory was low and demand was high, which meant that a house on the market might sell for more than it was worth.
Knowing when to buy or sell a house can be complicated.
To sell
In 2023, the market is likely to be different. According to Bloomberg, a recession may be on the horizon, but interest rates are expected to stabilize. Sellers will have to be conscious that inflation, demand, and inventory are somewhat uncertain and unpredictable at this point. Think about whether you will need to borrow a mortgage and consider other personal financial circumstances at play.
Not to sell
The market may not be as hospitable to sellers as it has been the past two years, with lower demand than usual. According to The Fannie Mae Home Purchase Sentiment Index® (HPSI), only 17% of respondents believe it's a good time to buy a home. The uncertainty is a result of affordability challenges posed by elevated mortgage rates and home prices.
The real estate market in 2023 may present the seller with more challenges than in the past two years, but with the right team on your side, a sale can be made. For financial* support as you dip your toes into the housing market, reach out to Vectra Bank today.
* Credit approval required. Terms and conditions apply. See banker for details. A division of Zions Bancorporation, N.A. Member FDIC Equal Housing Lender. NMLS #467014
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