Since the summer of 2020, the demand for homes that could accommodate the lifestyle shift from working from the office to working from home outstripped the supply of homes available for sale. January 2021 also saw an all-time low of 2.65% on 30-year fixed-rate mortgages, giving buyers more buying power and sellers more selling power due to the housing shortage.
The trend continues in 2022, though interest rates are slowly increasing (while remaining comparatively low), home prices continue to rise (though not as high, with experts predicting 10% appreciation over last year’s 20%). Keeping this in mind, many homeowners thinking about putting their home up for sale might be wondering if 2022 is a good year to sell.
Judging by the current conditions in the market, there doesn’t seem to be a reason not to. With interest rates still low (though not as they were in 2021) and the continuation of the housing shortage, demand is still high, and there should be no problem finding eager buyers to make an offer on your home. Bear in mind that the overall housing demand may be high, but each area is unique, and it pays to observe what is going on where you live.
If you see many homes going up for sale in your neighborhood and the surrounding areas, you might have more competition and have a more challenging time selling than you anticipated. But if you live in a place where you are not seeing many houses going on the market around you, you may be able to take advantage of the housing shortage and have less competition when you sell.
As of now, it is still a seller’s market. Currently, the average interest rate on a 30-year fixed-rate mortgage is 3.44% (according to Zillow), and buyers are still taking advantage. You can still sell your home for a higher price point without worrying about putting off potential buyers. You are still likely to receive offers more quickly as buyers know that they must put forward competitive bids to win the bidding war.
The best time to sell a house in 2022 is during the first quarter, making January through March, when the holidays have just ended, winter is ending, and spring is just about to begin, the best months to sell a house in 2022. There are two main factors for this—low inventory and, at this point, low interest rates.
During the first two months of the year, inventory is usually pretty low and increases as spring approaches. The months from April through July are typically the busiest time in the market. Later spring into summer is the time with the most competition, with more homeowners putting up their homes for sale (but also more buyers).
The colder months have historically been known for having less housing inventory than the rest of the year. However, in 2021, fewer new houses were built because of pandemic-related supply chain interruptions and a shortage of construction materials. With fewer options available, buyers find themselves competing with each other, resulting in bidding wars that drive up housing prices. For sellers who want to get the highest price for their homes, this means that the time to sell is now.
While experts predict that interest rates will remain relatively low throughout the rest of the year, they also predict that rates will continue to increase from this point on. Many buyers will still want to take advantage of these low interest rates, but not as many as the current moment when interest rates are the lowest they will probably be for 2022. The more buyers there are in the market for a home, the more likely you will find one willing to meet your selling price.
Market conditions in the first three months with low inventory and high demand due to still-low interest rates are ideal at this time of the year for sellers, making it the best time to sell a house in 2022.
It is not always easy to determine the best time of year for selling your home. For example, spring is generally associated with a busier housing market, but this is not necessarily true in areas like Phoenix, Southern California, Florida, or Texas, where extreme weather conditions (extreme heat, tornadoes, and hurricanes, to name a few) that can impact sales.
Suppose you are thinking of selling your home in 2022. In that case, general guidance according to current market conditions (low inventory, low interest rates, higher housing values) and the time of year indicate that there is no reason not to put your home up for sale now. Instead, you should strike while the iron is hot.
As 2022 continues, the market is likely to level off as interest rates begin to climb, driving down buyer enthusiasm and their buying power, as well as the ability of sellers to get the highest prices for their homes possible. But it would be best if you also considered other factors when deciding to sell your home, including financial circumstances, your living environment, the condition of your home, and its value, not to mention what your local market is doing.
While all signs point to “yes” when it comes to the question, “Should I sell my house in 2022?” it’s still a good idea to do research and perhaps even speak to a local real estate agent for the best, up-to-date guidance you can get before making the decision that is best for you and your situation.