Is now the right time to SELL your PROPERTY?
Trying to time house resales to the peak of the market is rather like trying to time stock sales. It is always difficult to recognize the turning point.
For most HOMEOWNERS, it should be a more comprehensive decision than just, “When can I SELL to get the highest price?” Families should consider what their opportunity costs are by remaining in a house they do not want.
First, if they wait to sell their current house until prices rise, then the price of the replacement house they want to purchase may similarly rise, including the risk of rise in mortgage rates. So their additional profit from the sold house is simply used to pay a higher price on the replacement house.
If the replacement HOUSE would provide the family greater happiness, they are forgoing enjoying that new neighborhood, better school, shorter commute or whatever they are hoping to gain in a new house. All this comes at a cost.
If a family has already moved and the HOUSE they want to sell is sitting vacant or is occupied by a renter, then they have to consider the revenue versus carrying costs of maintaining ownership of their old home. By waiting to sell, they may obtain a higher price. But meanwhile, the house may be costing them money that will offset any increase in price.
See other “REAL ESTATE QUESTIONS” blog posts: