According to a new article from Morgan Stanley investment group, the high prices in the housing market have begun to level off and will more than likely start to decline later this year.
So if you were dreaming of selling and getting the HIGHEST price possible for your property - I would encourage you not to wait any longer.
A team from Morgan Stanley just announced that "the year-on-year home price growth will slow over the next 12 months from nearly 19% in Dec 2021 to around 5% by the end of 2022, under their base case."
Now that interest rates have risen, inventory will most likely fall due to the fact that homeowners will feel like they need to stay locked into their current mortgage. "It doesn’t take long for rising interest rates to make their mark on housing markets. Historically, rising interest rates impact home sales volume, or the number of houses sold, but with a slight lag. Volume initially climbs during the first six months of rate increases and then drop in the subsequent 12 months as higher mortgage rates drive up the cost of owning.
Declining sales volume is often a precursor to declining prices—but not always.
Here’s where supply comes in. “Right now, inventories are historically low, and the rapid rise in mortgages rates over the past several months should keep inventory tight as current homeowners have more incentive to stay locked into their low rates,” says Egan."
If you are thinking about selling, please reach out to me. I can walk you through the process, together we can decide on your homes value based on not just comps - but the local market. There are tactics we can use to create buzz and get multiple offers competing over your property. Interest rates are still very reasonable, so it is very possible to "trade up" and still keep your payment low. Summer is the best time to sell and prices aren't predicted to fall until the end of the year - it's not too late to get the highest price for your property - but please don't wait.
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