Houses are selling in bidding wars and for top dollar. Sounds like a great time to sell, right? But where will you live? Will you be able to find a new house without ending up in your own bidding war? So how do you decide if now is the smartest time to sell? When thinking, should I sell my house now in Utah, look at these five factors to help you determine if you should sell your house in 2022 or should you wait.
Interest Rates are on the Rise (But Still Low!)
Interest rates are playing a big role in this hot sellers market. The rates have been historically low over the past year with numbers on a slight increase. The good news is that the rates are still really low, but rising rates could scare away some potential buyers who were hoping to upgrade to a bigger home while keeping the same monthly payments.
If you’re looking to sell your home it’s smart to take advantage of the low mortgage rates while they are still low. There is a direct relation between low interest rates and home purchases so a rise of a half a percentage point will knock plenty of buyers out of the purchase point for some houses.
Foreclosure Moratorium Is Over
Another factor to consider is the end of the foreclosure moratorium put in place under the Biden ministration when Covid-19 hit. With the moratorium homeowners who were having trouble making mortgage payments could request a forbearance from their lender. The deadline for the forbearance period was extended to July of 2021. Thousands of homes with a FHA loan and more than 90 days behind on payments could now be sent into foreclosures.
During the moratorium there were very few foreclosures on the market, this factor combined with a low supply in general in 2021 meant that homes were higher in demand than ever and high home prices reflected that.
With the return of the foreclosures and the delayed foreclosures on the market currently you’ll start to see a rise in competition in lower priced houses in the market. Foreclosure homes also tend to lower the value of nearby homes and more lower priced homes on the market means less demand for top-dollar homes.
Spike in New Home Builds
Utah is dealing with an issue of supply and demand driving real estate prices sky high — great for house sellers, tough on new home buyers. The supply has been low so selling now will allow you to reap the profit from a low inventory market with multiple people interested in your home.
New homes builds are coming to Utah after a short dip in building at the beginning of Covid-19. More homes are being built each year and 2022 will be no different so expect to see home prices start to decline as the housing market catches up with demand.
Baby Boomers Homes are Coming to the Market
Baby boomers are currently in their mid-50’s to mid-70’s and own roughly one third of homes in the U.S. These means that as this generation starts to downsize, move in with family, die or go into a retirement home there will be roughly 21 million homes hitting the market in the next decade.
That means thousands of additional homes for sale each year affecting the current market prices and availability.
The End of the Instability from the Pandemic
Despite high number counts Utah has largely seen a return to normal in regards to job stability. The concerns that had people holding on to their home early in the pandemic have calmed down or gone away at this point. As the economy begins to normalize people will feel more confident about making a huge purchase like a home and even more buyers could be heading to the market.
Should I Sell My House in 2022?
When you are trying to decide, should I sell my house now in Utah, there are a lot of things to consider. With historically low rates, the potential for more houses to hit the market from foreclosures, boomers and new home builds it could be that right now is the perfect time to sell your house. These aren’t the only factors, however. Do you need to be able to purchase a new home in this market? Will ending up in a bidding war on a new home make financial sense after selling your current home? Personal factors as well as your job and financial situation and even the condition of your current home will also play a big part of your decision.
If you’re worried about selling a house in poor condition or if you need to sell quickly to avoid being late on mortgage payments then consider working with a fast, non-traditional home buyer like Gary with Gary Buys Houses. Reach out to him today to get a custom quote that is tailor fit to your situation — even allowing for you to rent back your house or stay in your house for several months while you search for your new home. Click HERE to reach out to Gary today and take the stress out of deciding if NOW is the right time to sell a house in Utah.