You know that droves of city dwellers have been trying to find new homes in Super States around the country. New Yorkers are even leaving behind the flavors of Barney Greengrass to head to places like Florida and Texas. The churn of people leaving cities and changing states has led to a Tsunami of home sales. But as the Fed begins raising rates, some homeowners are wondering if they’ve missed their opportunity to sell. The WSJ’s Veronica Dagher reports:
Blood pressure is now rising along with home prices and mortgage rates as homeowners fear missing out on the right moment to stake the “For Sale” sign in the front yard.
The mood among sellers seems to have shifted in recent weeks from apathy about the slow boil of higher rates to urgency, financial advisers and real-estate agents said. Sellers are seeking advice on how best to time the market and tame their anxiety.
“The thought of rising interest rates has lit a bit of fire to our timeline,” said Meri Schroeder, a retiree in Frederick, Md.
She and her husband Dave Schroeder plan to put their 3,400-square-foot home on the market in the next few weeks to take advantage of the spring selling season and find a buyer before rates rise again in May. They hope to buy a smaller home with cash in Ohio.
Higher rates should cool prices in theory, though so far home buyer demand seems resilient and, in a further boon to sellers, the inventory of homes on the market remains low. Sellers may want to act quickly given that, as the Federal Reserve Bank of Dallas put it, “there’s growing concern that U.S. house prices are again becoming unhinged from fundamentals.”
How to tell when is the best time to sell
So how should prospective home sellers decide whether to accelerate their plans? Financial advisers generally say not to sell solely because mortgage rates are rising—after all, interest rates still remain near historic lows. The first step, real-estate agents and lenders suggest, is to take stock of the local real-estate market and your own financial situation.
This is still very much a seller’s market, with many homes going for over the asking price and at breakneck speeds. The housing market may already be showing signs of leveling off, some economists say, and sellers can track several key data points.
Action Line: There’s no one correct answer to the question “Is it too late to sell your house?” The answer is very individual, and depends on so many factors, they can’t be quantified. But if you’re seriously looking to make a move, sell your house, and find the home of your dreams in a Super State, click here to subscribe to my free monthly Survive & Thrive letter. I’ll help you stay motivated to achieve your goals and build the life you’ve dreamed of. But only if you’re serious.
E.J. Smith - Your Survival Guy
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