We’re getting lots of questions from homeowners asking about whether now is the right time to get into the market and sell their home.
For sellers, it helps to look at what buyers are dealing with right now amidst high inflation.
Over the past year, mortgage rates have more than doubled. That means that the average monthly payment for a single-family home of median value in Massachusetts has gone from $1,695 to $2,716 in just twelve months. To put that in perspective, that’s an increase of more than $12,000 a year in mortgage payments, and it’s like having to make two mortgage payments a month from New Year’s through July compared to what you paid just a year ago. Looked at another way, for the buyer who can’t afford to pay more, it means having to reduce their budget for buying a home by almost one-third – in an environment where low housing inventory means prices are still high. And, of course, the cost of living generally (consumer goods, utilities, etc.) also has gone up.
Prices are starting to moderate a bit, and inventory remains low, so buyers who remain ready, willing, and able to buy are starting to see some relief. Sellers who want to take advantage of relatively high prices and who want to get in before rates rise again may wish to act quickly. However, sellers also need to be realistic about pricing and time on-market given today’s buyer pool.
And, of course, since most sellers are also prospective buyers, it’s important to have a plan of where you intend to go once you sell. We are always happy to discuss your individual situation and help you decide what’s best for you.