Should I sell my house now?

Deciding to sell your home is a big decision. While a seller’s personal circumstances will always be the top priority when considering whether or not to sell a house, housing market forecasts and conditions also play a big role in informing this decision. Fortunately for homeowners who may need to sell this year, 2024 will remain a good time to sell a house.

Is it a good time to sell a house?

Market volatility over the past year has made some experts wringing their hands about a market correction and an oncoming recession that will decrease home prices. While it’s unlikely that home prices will hit the scorching highs of 2020-2022, a continuing inventory shortage and a growing pool of Millennials who are getting ready to buy their first home will maintain a seller’s market.

Despite the concerns about the economy and the housing market, most real estate professionals agree that it’s still a good time to sell your house.

Some people may think a crash is coming, but Deitrich Fields, a licensed real estate based in Dallas Fort-Worth says, “Everybody has different opinions but based on what I've seen, home prices are just fair.”

Of course, every home seller wants to get the most value for their asset, but the extraordinary seller’s market of recent years just doesn’t exist anymore.

Bobbie Schwartz, a licensed real estate agent with over 14 years of experience, agrees. “When was the best time to sell your house? Well, probably January or February [2022]. It's not as good now, but it's still a really good time.”

You don’t have to be in a historically tilted market for sellers to still get a good deal on your home. Now’s still a good time to sell for the following reasons:

Demand still exceeds supply

Buying a house is part of the American dream. Even as the real estate market continues to normalize, there are far more people who want to buy homes than there are homes on the market. As long as the United States struggles to increase housing inventory, as it has for decades, the housing market will always at least slightly skew towards sellers.

Rates will drop

In 2023, the United States had some of the highest mortgage interest rates we’ve seen in recent years. Closing the year at a national average above 7.5% for a 30-year fixed-rate mortgage, rates were a full percentage point above the same time in 2022. However, that’s still below the historical average of 7.77%

Amid reports that inflation is slowing, the Federal Reserve has indicated it will cut interest rates six times in 2024. That’s great news for the stock market and for the housing market. When interest rates are lower, it’s easier for buyers to afford mortgages meaning there are more in the market. Plus, lower interest rates make it easier for sellers to buy a new home after selling their existing one.

Home prices will remain steady

Property is such a good investment because it generally always appreciates in value over time. While housing prices are down a bit since the 2020-2022 peak, mortgage giant Fannie Mae still projects that housing prices will increase by as much as 6.7% in 2024.

Between easing interest rates and rising home prices, 2024 should be an excellent time to get a good price on your home and lock in an affordable mortgage on a property upgrade.

→ Find out how much your home is worth

When to sell your home

Market conditions aren’t the only factors to consider when selling your house — there are other considerations, like what makes the most sense for you. Here are some additional elements to consider when contemplating if now is a good time to sell your home:

• Mortgage rates are low: Low interest rates drive up demand, which can lead to bidding wars and the potential to get more than your asking price.

• Housing supply is low: Likewise, low supply means there’s more competition for houses. In markets with low supply, houses typically sell faster, too.

• You’re downsizing: Maintaining a house is expensive. If you’re downsizing you may choose to sell your house in order to keep overhead low.

• You’re relocating: Whether you got a new job, are moving closer to family and friends, or just need a change of scenery, selling your old home can make buying a new one easier when you use your home equity to purchase your new house. 

• You’re tired of managing investment properties: If managing your rental properties has gotten to be too much, cashing out during a seller’s market could be a way to make your life easier while making a solid profit.

When should you wait to sell 

Even if the market conditions are perfect for sellers, that doesn’t mean they’re perfect for you. Here are some reasons to wait to sell your house:

You can’t afford the price tag

There are hidden costs to selling your home (closing costs, origination fees) as well as buying a new one. If you don’t have enough saved or wouldn’t make enough money on the sale of your home, it may be better to wait until you’re prepared to take on these costs.

Curious how much you’d make selling your home? Use Orchard’s Home Sale Calculator.

Recently purchases or refinanced

‍If you recently purchased or refinanced your home, you likely don’t have enough home equity to recoup the costs of selling it. If this is the case, it may be smarter to wait until you have enough equity to cover paying off your mortgage and closing costs — the “five-year rule” is generally considered the minimum for how long you should wait before selling your home after buying.

You’d have to sell as-is

There’s no way to calculate exactly how much you can lose selling your house as-is, but consider that 80% of homebuyers prefer a move-in-ready home to a fixer-upper. A home that needs work can be a turn-off to buyers and drive down the asking price. Waiting to sell and fixing your home for the market could maximize your profits.

You can’t afford the tax event

Provided a home you sell was your primary residence for two years of the previous five, you can exclude up to $250,000 of capital gain (or $500,000 if filing jointly) on a home sale. If you’re profiting more than that, you’re likely in line for a major tax event. If you can’t afford the tax implications of selling a home, like paying capital gains taxes, it’s likely better to wait to sell, or intentionally take a lower offer to avoid the tax.

You aren’t ready to move

Saying goodbye to a home is an emotional experience, which is probably why almost 40% of Americans cry during the process of selling their home, according to a CNBC survey. Just because it makes sense on paper to sell your home, that doesn’t mean that it makes sense for you right now. Don’t be afraid to wait until you’re ready — if you don’t, you may end up with seller’s remorse.

You're having trouble finding a new house 

It’s still a seller’s market, so it’s a good time to sell your home, but a bit more complicated when buying your next one. Buyers who are selling their primary residence for a new one face an uphill battle: They need to sell their home first to buy a new one but may face a long waiting period before they’re able to close on their new home. Will they be able to get the closing dates to line up? What if one deal falls through? Where do they live in the meantime?

Orchard can help. Our Move First service helps you buy your new house, then sell your old one. We’ll even give you a guaranteed offer on your home, so you don't have to be a contingent buyer. Get started with a free home estimate.

FAQs

More answers to your questions about selling your house now.

Should I wait until spring 2024 to sell my house?

The housing market is usually slower in the winter and with the expectation of lower interest rates to spur buyers, it’s wise to wait until spring 2024. 

What if there's a recession?

Property isn’t recession-proof, but it’s always good to be sitting on a valuable asset when the economy is declined. If the economy goes into recession, it will likely impact the buying power in the market, which will make it harder to get the best value possible for your home. You probably don’t want to sell your home during a recession.

That said, recession is a constant economic boogeyman, always looming around the corner depending on who you ask. The housing market is strong and projections expect it to remain that way throughout 2024.

How can I maximize my profits when selling my house in the current market?

Consider enhancing your property's curb appeal and making necessary repairs and updates to make it more attractive to potential buyers. Accurately pricing your home based on a comparative market analysis (CMA) and recent sales data is crucial to attract buyers and maximize your return. Use high-quality listing photos, virtual tours, and comprehensive property listings online to reach a broader audience. Lastly, consider working with an experienced real estate agent who can provide expert advice, negotiate effectively on your behalf, and help you navigate the complexities of the selling process, ultimately increasing your chances of getting the best possible sale price.

If that sounds like a lot, that's because it is. But when you work with Orchard, we make selling a breeze. We'll make value-boosting repairs and upgrades to your home at no upfront cost to you with our Concierge service. We can even help you buy a new home before you sell, so you can focus on settling down while we handle selling your old home. Learn more about how Orchard works.

How can I stay informed about market trends to make an informed decision?

The best way to stay informed about market trends is to connect with local real estate professionals, like real estate agents and brokers, who possess firsthand knowledge of your specific market area.