Dear friends and clients,
Due to pandemic-related disruptions over the past two years, the real estate market has completely changed and seriously favors sellers. If you want to take advantage of this market and extract as much value out of your property as possible, now is the time to sell.
After a few years of pandemic-related craziness, it looks like seasonality is starting to return to the housing market. As the weather warms up in the spring, more sellers list their homes, and more buyers come off the sidelines. You can sell your home faster and for more money than usual as buyers flood the market. However, due to our extremely low inventory and high demand, the spring rush has started earlier than expected.
That’s all very encouraging for sellers, but they should also make haste because mortgage rates will rise throughout the year. These rising rates will make buyers’ offers more conservative and may reduce affordability and demand. Additionally, more sellers are likely to enter the spring market, which will increase competition.
Builders could also start to accelerate construction if supply chain and labor issues improve. That will also create more competition for people selling homes. All of these factors mean that now is the time to sell.
However, one fear is still stopping many homeowners from selling. In this seller’s market, it’s relatively easy to get your home sold for the same reason it can be difficult to find your next home. The low inventory and high demand have made it challenging and stressful for sellers to purchase their next home.
Coordinating simultaneous closings in a normal market was very common, but this market isn’t normal. What can sellers do?
Many homeowners who sell before they buy have been able to secure a rent-back agreement, letting them stay in their home for up to 90 days while they find their next one. The downside to selling first is that you’ll likely have more contingencies when making offers on your next home. In a seller’s market like this, buying first is a safer option. There’s comfort in knowing that you’ll have somewhere to go, and you won’t have to pay for temporary housing and storage facilities.
If you need funding to buy, we have a cash-bridge program to help buyers make cash offers before they sell their homes. Click here to find out more information about this program. Ultimately, you'll want to speak with your lender and real estate advisor to find the best strategy for your situation.
If you’re curious about what your home is worth in today’s market, you can use this home value calculator, which takes into account recent Austin sales:
Enter your address here to find out what your home is currently worth
If you have any questions about our market or are thinking about buying or selling, don’t hesitate to call us at 512-829-8000 or email sold@wattersinternational.com. We’re here to help you meet your real estate goals in this shifting market.
We look forward to hearing from you,
Chris Watters
Looking to buy a home? Looking to sell a home?
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