homeseller – Lupe Ruiz

Volatile interest rates, inflation, and a reset in housing probably have you wondering if it is a good move to sell or buy your home right now. Interest rates have been going up; housing prices are still at the highest they have ever been; and the media is announcing a housing crisis.

So, what now? Well, first of all, consider all the data before you listen to discouraging reports…there is a greater chance we will have a housing reset and not a housing crash. Secondly, determining whether or not it is a good time to make a move depends on your individual needs. Are you relocating? Are there health or financial reasons? Is there a life event? Or, are you simply tired of paying someone else’s mortgage?

Buyers — Yes, interest rates are higher than a few months ago. However, they will eventually go down again; and you can refinance to a lower rate. And, if the value were to go down (which is not expected any time soon); it will eventually go up again as well. If you are planning on living there long term and you can afford your mortgage payment; a change in value would not be relevant right now.

Sellers — Yes, if you sell now for a higher profit, your replacement home will also cost more than before the inflation creeped up on us. Nonetheless, consider that this is relative; and you can use the equity you gain from the sale as down payment on your new home. If you are concerned about closing and not having a replacement home, consider negotiating to stay some additional time after close of escrow.

I hope this helps to answer if it is a good time or not to make a move. It might not be the right time to purchase an investment property. However, it could be the right time to buy your home. Your story is different from your neighbors’ so what is right for you, might not be right for them and vice versa.

Despite various employers offering telecommuting opportunities prior to the pandemic, the norm for the majority of the employees has always been to be at the office in person. When we had the shutdown last year, both employers and employees had to innovate and learn to adjust to remote work for employees.

They Adjusted to a New Way of Doing Business

Home offices were set in place, office equipment was used at home, and new ways of communicating face to face were implemented. Perhaps, at the beginning it was an inconvenience, but as time went by and social distancing became the norm, both businesses and employees began to see how telecommuting could benefit them.—Businesses would reduce overhead and employees would reduce commuting time.

The Pew Research Center conducted a survey which showed only 20% of employed adults were working from home prior to the pandemic. After the pandemic, it was 71% working from home. And, when asked who would prefer to work from home after the pandemic, 54% said yes.

(Image from Pew Research Center)

How Does it Impact Homeowners

There is no doubt many will remain working remotely whether it’s a couple of days a week or 100%.

Hanley Wood conducted a survey last year asking if employees would consider moving to a new home if they could work remotely, over 36% said yes. And, when asked if they lived in an expensive area if they would move if they could go all remote, 55% said yes.

Homeowners who own their home near their place of employment may now have an opportunity to relocate to the place they have always wanted to live. It may be saving money or simply a change in lifestyle, but relocating may now be possible regardless of where you work.

So, if you have been on the fence about selling your home and relocating, this is the time to do it. The market is hot for sellers. Not only would you be able to profit the most on the sale but you would also be able to negotiate staying in your home until you find your replacement home. Don’t think about it too much. You might miss a great opportunity to sell at the highest profit possible in history!

Tag: homeseller

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