It’s a seller’s market. If you pay any attention to the real estate industry, you’ll know that most areas in the nation are favoring home sellers, rather than buyers, at the moment. Houses are receiving dozens of offers on the first day they’re listed (sometimes even within the first few hours!). Home buyers are throwing down tens of thousands of dollars on top of the asking price in order to secure their bid.
In such a hot seller’s market, should YOU consider selling your home?
In my last blog post, I wrote about the stock market and whether or not to invest NOW. The main lesson from that blog post is the same one we learn as children in the story of the Tortoise and the Hare: Slow and steady wins the race. Over time, the stock market will have peaks and valleys and the best course of action is to simply ride the waves and let your investment grow slowly (which, according to historical data, it will!)
Your investment in your home is similar.
When you purchase a home, it’s best to do it with the understanding that this is a long-term investment, one that will experience fluctuates in the market, just as with stocks. The media and pushy realtors tempt us with shouts of, “Sell now! Do it while you have the chance!” But I firmly believe you should only sell your home for specific reasons, such as:
- Downsizing to fit a more modest lifestyle
- Upsizing to accommodate a growing family
- Relocating with your job
- Retiring and moving into a townhome or assisted living facility
Notice that “squeezing out a small profit” is not on the list!
The real estate market will swing one way, and then the other. It’s the way it naturally corrects itself over time. This current swing—the one in favor of sellers—is the market’s way of recovering from the extreme “buyer’s market” in 2008 and the subsequent few years. And, do you know what? 2008 housing prices dipped so low that they still haven’t caught up with inflation. So, this swing is not all that extreme.
If you’re still not convinced that it’s better to sit tight, think things through, and strategize before you consider moving, think about it this way: You don’t lose A THING if you don’t sell. You’ll still be in your home. You’ll still have a roof over your head and a place to sleep. Your investment is still worth something and, even if you miss out on selling your home this time around, the market will swing back in your favor at some other point in the future. And even if it doesn’t, it’s not about timing the market, it’s about moving with the right intentions.