With a favorable seller’s market still running strong, you might be wondering if now is the time to sell your home. Ever since mortgage rates dropped to a historic low in 2020, the buyer competition ratcheted up, while inventory of homes for sale remained low. The mortgage rate drop fueled an already high-demand/low-supply situation, giving home sellers great opportunities to sell with hefty profits. Here are four reasons why 2022 might be the year for you to sell.

1. Home Prices Are at an All-Time High—Cash in on the Profit Now

U.S. house prices rose 17.5 percent from the fourth quarter of 2020 to the fourth quarter of 2021, according to the Federal Housing Finance Agency. Housing experts are predicting that home prices will remain high throughout 2022, even if they do not increase as much as they did last year. At some point in the future, the market will start rebalancing. Home owners who are on the fence about moving need to seriously consider the present opportunity to sell at the top range of what they can get for their home in 2022. There is no guarantee that the market will allow for such high prices next year.

2. Take Advantage of Low Competition

Many people decided not to sell during the pandemic, which worsened an already short supply of homes for sale. As health conditions improve, we’re likely to see more homes come on the market, which means more competition. As of this writing, there are some communities in Greater Cincinnati that have less than 30 homes available for sale, and often fewer than a handful under $400,000. With fewer sellers competing in one area, buyers have to make a decision among fewer prospects and prices stay elevated. When more people in your area “come off the fence” and start putting up for sale signs, options improve for buyers, and sellers may need to make more concessions to compete for their attention.

3. Interest Rates Will Rise, But Remain in the Low Range

Federal Reserve officials have indicated that interest rates will rise in 2022. Realtor.com predicts that rates will still remain low, averaging around 3.3 percent and later rise to the 3.6 percent range. This means many people will still be looking to buy your home. If you’re in decent financial health, it also means you’ll still be able to buy a new home at a relatively low interest rate. If you’ve been thinking of selling, it could be time to take advantage of these low rates while they last.

4. You No Longer Need to Live Close to Work

In the past, many families paid a premium price for a prime location that cuts their commute to work. Due to pandemic conditions in the last two years, however, employers have reconsidered the necessity to be physically present in the office. Remote work has become more prevalent in all kinds of industries. If you’ve experienced this remote work change, you might discover that you can afford a better home further outside the city, without the location premium.

Before Selling, Consider Where You’ll Go Next

With all the upsides to selling in 2022, there are some cautions to consider as well. First and foremost is where you’ll go next. Unless you’re targeting a location with fewer buyers, you’ll likely need to face similar buyer competition as the people who will purchase your current home. Make sure you’re up for the challenge. It may take patience and an enduring spirit, something many buyers struggle with in a seller’s market. Research home prices today. Do the math to ensure that your net gain from a sale puts you in a healthy financial position for the type of home you want to buy.

Real Estate Term of the Week

Pending – Will Accept Backup Offers: After a seller has accepted a buyer’s offer, the deal may run into a snag. For instance, the buyer may have trouble qualifying for a mortgage. The seller’s listing agent can change the home’s status to “Pending – Will Accept Backup Offers,” which will allow the seller to consider backup offers in case the original offer falls through.

Platinum Service Realty