A Golden Opportunity: Why Homeowners Should Consider Selling in 2024
so they can remove the golden handcuffs of their mortgage rate and free themselves of their self-imposed house arrest!
I've got some exciting news for all you homeowners out there. If you've been toying with the idea of selling your home, 2023 could be the perfect year to make that move. The real estate market is showing signs of promise, and there are several compelling reasons why 2024 is the golden opportunity is might just be you've been waiting for.
- Record-Breaking Prices One of the most significant reasons to consider selling in 2023 is the remarkable surge in home prices. Over the past couple of years, we've witnessed record-breaking appreciation in many housing markets across the country. Low inventory and high demand have driven up prices, making it an ideal time to cash in on your property's value. If you've owned your home for a while, you may be sitting on a goldmine without even realizing it.
Mortgage Rates Mortgage rates have been flirting with historic lows for some time now. Yes, that what I said, because the 30-year average on rates is 8.0% and we’re sitting around 7.2% today and rates are predicted to drop over 2024 and 2025. These new normal interest rates have buyers back in the market because they are starting to realize calling the rates high, assumes there are other options. There are no other rate options, therefore today’s rate is not high, it’s just today’s rate. 3% was almost 2 years ago, those days are gone!
Pay off debt, change homes, neighborhoods or even relocate. Invest in a second home or a vacation rental. So many options with your equity!
- Equity Buildup If you've owned your home for a few years, chances are you've been steadily building equity. That's the difference between what your home is worth and what you owe on your mortgage. With rising home prices, you might find yourself in a situation where you have substantial equity, allowing you to make a more significant down payment on your next home or invest in other opportunities. Keep in mind your tax shelter only cover you up to $250,000 in gain if you are single and $500,000 if you are married, everything over that is taxable gain. Why not invest that elsewhere where it goes to work for you vs. paying it to Uncle Sam?
- Changing Needs Life is dynamic, and so are our housing needs. Over the past few years, many people have experienced significant lifestyle changes, such as remote work becoming more prevalent. These changes may have shifted your priorities, making it an excellent time to reassess your living situation. Whether you need more space, less maintenance, or a different location, 2024 offers a chance to align your home with your current needs and preferences.
New Construction Opportunities The housing market isn't just about buying and selling existing homes. New construction is booming in many areas, and builders are eager to meet the demand. Selling your current home could provide the necessary funds to jump into a brand-new, energy-efficient, and modern property that suits your lifestyle better. Plus, new construction homes often come with warranties, reducing the risk of costly repairs.
- Potential Market Shift While the real estate market has been hot, nothing lasts forever. Markets can be cyclical, and there are signs that the rapid appreciation we've seen may slow down in the coming years, just like it did in San Diego from May 2022 through December 2022. Selling in 2024 allows you to take advantage of the current favorable conditions before they potentially shift in favor of buyers.
- Timing the Market Timing the real estate market is challenging, but selling in a seller's market can be incredibly advantageous. Buyers are motivated and willing to pay a premium for the right property, which can translate into a higher sale price and a faster transaction.
In conclusion, if you've been contemplating selling your home, 2024 presents a unique opportunity to maximize your return on investment. With record-breaking prices, affordable mortgage rates, and changing housing needs, there's a compelling case to consider listing your property. Of course, the decision to sell should be based on your individual circumstances and goals, so it's crucial to consult with a knowledgeable real estate professional to help guide you through the process. Don't miss out on this potentially once-in-a-lifetime opportunity to make a move that could greatly benefit your financial future.
For a non-sales, no pressure consultation, contact Thomas today!
Infographic courtesy of Keeping Current Matters