We have been getting this question a lot recently from home owners who are on the fence about selling their homes in this market. The main concern is, “where will we go, if we sell?”. Inventory is so low here in the Atlanta market and prices have risen so much. that home owners almost feel stuck where they are. Yes, they can get top dollar for your home, but will you be able to find something to buy?
I 100% percent understand that feeling and that’s why I wanted to talk to you guys a little bit about what the scenario would look like if you do wait. The question you should ask yourself is, “do I see myself and my family living in this same house in 5 years?” or “Will I have outgrown this home in 5 years?”
The reason for that question is that, even though the market is difficult right now, you as a home owner are in the best possible position to upgrade your home. We don’t know what the market will look like in 5 years. But, there is a good chance that inventory will have rebounded at that point and you will have to compete much harder to get the price you want/need for your home.
Another big factor at play here that I always mention are those interest rates. As you probably know, the Fed raised interest rates earlier this month. That was the first rate hike in 6 years. They plan to raise the rate several more times this year. What that means for you as a home owner trying to sell your home, is that many of your prospective buyers may no longer be able to afford your home.
When the market shift happens, it will happen very quickly. So you’ll be chasing the market downward if you decide to sell. At that point you will also be buying as the market is going down instead of upward, like it is today. The market rebound after a shift tends to happen much slower than the swiftness of the initial fall. However, the market here in Atlanta has historically always trended upward.
The truth is that you can never time the market just right so that you get top dollar for your home and also have plenty of inventory to choose from. So, do you see yourself living in your current home in 5 years? If the answer is NO, then now is the time to act.