There are several factors to consider if you’re thinking about selling your house. For instance, you must study the current housing market, make sure your home is ready to sell and set a reasonable price. However, the market is constantly changing. So, what’s the status now, and is the housing market cooling off? Keep reading as we discuss five tips for owners trying to sell in a cooling market.
Is it Still a Seller’s Market?
Throughout this year, we’ve seen a very unpredictable market. As the year goes on, the market continues to change. For instance, compared to six months ago, homes are not selling as quickly, and bidding wars aren’t as typical. So, is it still a seller’s market?
A seller’s market is when the housing demand exceeds the supply. Over the course of the year, we’ve seen tons of people looking to buy houses without a lot of supply of reasonably priced homes. So, typically in a seller’s market, we see home prices increase.
Although the housing market is changing, it’s still technically a seller’s market–but that could change soon.
Why Is the Housing Market Cooling Off?
Over the past few months, we’ve seen the housing market cool off a bit. That said, there could be several reasons for this. For one, mortgage rates are incredibly high right now, so many people are waiting to buy homes until rates slow down. After all, higher mortgage rates mean higher monthly payments for homebuyers.
Another sign the market is cooling off is slower home price growth. Although home prices are at an all-time high, we’re starting to experience less growth this year than in 2020 and 2021. Less price growth means a more regular and relaxed housing market.
Additionally, the housing market could be cooling off due to more inventory. Over the past year or so, we’ve seen a dramatic decrease in housing inventory. However, things are changing, and some markets are seeing an increase in homes for sale.
5 Tips for Owners Trying to Sell in a Cooling Market
If you’re trying to sell your property in a cooling market, it can be more challenging than usual. After all, there’s more competition, and homebuyers are looking for the best deal. That said, here are five tips for owners trying to sell while the housing market is cooling off.
- Study Your Local Market
- Price Your Home Reasonably
- Know When to Lower Your Price
- Make Home Improvements
- Prepare for Competition
Study Your Local Market
The first step to selling your home in any market is research. It’s crucial to know the current status of the housing market to estimate whether your home will sell quickly or sit for sale. Overall, some market research can indicate whether it’s a good time to sell or if it’s better to wait a few months before putting your house on the market.
Price Your Home Reasonably
It’s crucial to price your home reasonably from the start. If you don’t, it’s going to sit on the market. It could be incredibly discouraging if your home sits on the market longer than other competitors. So, if it’s been on the market for some time and there’s no interest, it’s time to reevaluate the price.
Know When to Lower Your Price
Along with that, you must know when to lower your price. Ultimately, it depends on your goals and how quickly you need to sell your home. If it’s taking too long and you’re growing impatient, you might need to lower your home price. On the other hand, if you can afford to wait for the right buyer, then it could be worth the wait.
Make Home Improvements
Before putting your home on the market, make sure it’s desirable. If you want your home to stand out against others, it’s important to make improvements, upgrades, and renovations before selling. Whether you renovate the kitchen, install new flooring, or buy all new appliances for the home, there are several selling-point improvements.
Prepare for Competition
As the market cools and more inventory is added, the competition for sellers is higher. After all, with more homes on the market, buyers have more to choose from. So, if you know that you’re selling your home in a competitive market, you must prepare for that. Set prices competitively, communicate efficiently with prospective buyers, and work with industry professionals to help ensure a smooth selling process.
Where Housing Markets are Cooling Off
Since the market differs depending on the location of homes, there are a few areas in particular where we’ve seen the market cool off. Here are the top cities where the housing market is cooling off the most.
- Seattle, WA
- Boise, ID
- Las Vegas, NV
- San Jose, CA
- San Diego, CA
- Sacramento, CA
Recently, homebuyers have experienced high mortgage rates, rising home prices, and the effects of inflation in these markets. As such, many buyers are priced out, and fewer people can secure homes. But, now that the market is cooling down, homebuyers can negotiate deals easier and find more affordable homes.
Reasons to Rent Instead of Sell Your Property
People sell their homes for many reasons. Whether you’re moving to a larger property, wanting to downsize, or relocating, there are plenty of reasons to sell. However, you don’t have to. Instead, you may decide to rent your property to tenants and start earning income from it.
That said, if you’re looking for reasons to rent your property instead of selling it, just keep reading.
- Earn Passive Income
- High Rental Demand
- Continue Building Equity
Earn Passive Income
If you’re planning to sell your home for a new one and you’re looking for a quick way to pay off your new mortgage, consider renting your home instead. After all, if you decide to turn it into a rental, you’ll be making monthly income, which may be enough to cover your new mortgage payments. The best part is–you don’t have to do anything!
Owning rental properties is a very lucrative opportunity that doesn’t have to be hands-on, especially if you hire property management services in Northern Virginia.
High Rental Demand
Another reason that may encourage you to rent your home instead is the high rental demand. Most likely, someone will rent your property before buying it. So, why not capitalize on the idea and rent your property?
Continue Building Equity
Finally, another reason to keep your home and rent it instead is to continue building equity. If you’ve owned your home for a short time and property values have increased significantly in your neighborhood, consider holding onto it. Then, as you rent it out, you can build equity and possibly use that to expand your rental business.
Looking for Rental Property Management?
With the housing market cooling off, it’s time to decide whether you’re going to sell or rent your home. That said, if you already own or want to expand your rental business with more properties, you’ll want to consider property management. After all, you’ll need a full-service team to help find tenants, market your properties, and complete maintenance at your rentals.
Professional Property Management of Northern Virginia offers comprehensive property management services. Our management professionals offer several services, including tenant communication, maintenance, rent collection, and more. So, if you need rental management in Northern Virginia, contact PPM today.