Here are the top 6 reasons people are selling homes now instead of waiting for spring 2023. If any of these reasons resonate with you, contact us to navigate this market and sell your home in an efficient manner.
1. You’re Ready to Upgrade to a Bigger, Better Home
While interest rates have risen rapidly in the last few months, they aren't wildly out of hand compared to historical data. Now could be the perfect time to start your next adventure before the chaos of the spring market ensues. The buying experience has almost returned to the thoughtful process it once was, compared to the chaotic buying experiences you've heard horror stories about since 2020. Buyers are able to contemplate every option, obtain an inspection, and make the best decision for their situation.
2. Twin Cities Housing Inventory Remains Low
Inventory of homes for sale is still extraordinarily low, which means demand for housing is high. The latest report by the Saint Paul Area Association of Realtors shows approximately 9,000 homes for sale throughout the 12 Twin Cities metro area counties, outlined in the graph below. Housing inventory would need to double to create a balanced market. This particular market creates the perfect opportunity to sell your house, and buy a new one without getting stuck in the bidding wars anticipated in the spring 2023 market.
3. Opportunities to Increase Buyer Interest
Until the initial shock of the interest rate increase wears off, sellers have a few options to increase visibility while on the market. One of the most popular ways is to offer a 2/1 Buydown.
How does a 2/1 Buydown work? It’s simple. The seller pays for 2%-3% of the buyer’s closing costs, and the lender uses it to buy down the interest rate. This option is designed to cushion the buyer’s first two years of mortgage payments.
4. Home Appreciation
Sellers can use the rapid appreciation from the past few years to cash in on their equity and make a move to their dream home. Homes have appreciated at record highs over the past two years, an average of $17,000 in equity according to data from CoreLogic. The Twin Cities is a unique place that likely won't see drastic housing price changes due to the influx of out-of-state buyers.
5. Your Housing Needs Have Changed
Whether it's working from home, getting engaged, or having a baby—our lives are always changing, and sometimes a new house is the best way to welcome new adventures. Many people are spending more time at home than they ever have before and are starting to see their needs have changed. Perhaps you’ve found yourself daydreaming about more bedrooms or a kitchen built for entertaining. Now is the perfect time to find the home of your dreams, and find it before the high demand spring market hits.
6. Should I Sell My House Now or Wait Until Spring Market 2023?
There's no denying the rapid increase of interest rates had buyers stunned for a moment there. The reality is that an increasing number of buyers are coming to the Twin Cities metro area from other states, looking for a greener, cleaner environment, and having just cashed in on a monumental sale from a city like San Francisco or Seattle. With the steady stream of out-of-state buyers looking to Minnesota for its healthy living standards, it might just be the perfect time to strike on your dream home.
Let us know if you have any questions about selling a home in the Twin Cities. One of our experienced realtors will be in touch as soon as possible.
We can start the process today!
Visit our blogs about Selling Your Home or Selling Your Multi-family Investment Property.