All good things must come to an end, and the same must be said for the time you spend in your home. At some point, it becomes clear it’s time to pack things up and move on.
However, the decision of when to sell your home is never completely your own. There’s also the housing market to consider. The last thing you want to do is put your home up for sale when the market is in a poor condition. You’ll leave a lot of money on the table and bring a lot of stress onto yourself in the process.
How do you when your local housing market is primed for a sale? Read on and we’ll walk you through what you need to know.
Look at Price Movement
There a lot of different ways to gauge the health of the housing market. They’re worth learning, as the housing market in your neighborhood may be going through a different kind of movement than the rest of the country.
You’ll have to rely on yourself and not national news media to tell you when the time is right. While the national housing market may be looking strong, that won’t necessarily mean it’s a good time to list in your particular zip code.
One of the main signs you should look for in judging your local market? Rapidly rising or falling prices. If the prices on homes in your area seem to be hopping around repeatedly, it’s an indication that the market is out of balance.
Normally, you should see home prices in your area rise at about 5 percent each calendar year. That is a healthy rate of appreciation. If prices are rising or falling year to year, or even month to month, it can be cause for alarm.
You might want to wait until there is a healthier market before listing your home.
How Long Are Homes on the Market?
This is another fantastic metric for judging the health of the housing market in your area. You’ll want to look at a number of houses currently for sale and see how long they’ve been on the market.
Look at a large sample of houses and find the median of the bunch. Most homes are taken off the market prior to 90 days. If a home is listed for longer than that time, it can mean one of two things.
Either the property itself has an issue or the market is just standing up well currently. If multiple homes have been listed for over ninety days, it might indicate that the demand for new homes simply isn’t there.
How Many Homes For Sale?
It’s also worth driving around and seeing how many homes in your area are currently for sale. If you don’t see all too many For Sale signs in yards, it indicates that most homes are being bought up quickly. This is a good sign for your prospective sale.
However, if there are many homes for sale in your area, it’s an indication that the demand is not there. Your home can get easily lost in the shuffle with all the other properties.
Judging Your Local Housing Market
You’re ready to sell your home, but is the housing market in your area ready for you? The above telltale signs can help indicate when to list and when might be better to wait.
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