By Utah Real Estate Resource Center
Should I Buy or Sell Now?
Is this a good time to buy or sell a home? The answer is a resounding maybe. No matter what the market conditions are, there are always reasons why you should, or should not, buy or sell a home. The “No” side of the answer is pretty straightforward. The “Yes” side has many more factors that need to be considered. Either way, the answers are there.
As the Utah market enters 2023, it is leaving behind the incredible price growth seen over the past couple of years. One truism in real estate is that aggressive price growth has never been sustained and that when home prices grow too fast the market will reel in some of that excess price increase. The Utah marketplace has already seen that begin to happen. Further, mortgage interest rates have moved back to historical averages which have been a mental shock for everyone.
Right about now, people that are thinking of selling their homes are feeling like they have “lost money” on their property over the past few months. That is not the way to look at it. If a seller had sold at the top of the market, they also would have bought their new home at its highest price – a financial wash. If a seller sells now at a lower price, they will buy at a lower price (with more homes to choose from). The only real reason to hold off on selling is that you might have a mortgage rate that you don’t want to give up, but there are upsides to even that.
Buying right now has gotten almost back to “normal”. There are now more homes for sale than buyers looking. However, while prices have dropped, they are not way down, especially in desirable neighborhoods. So, how do you know if it is time to buy? The rule now is what it has always been – if you find a home that meets both your wants and your needs, at a price that does not create financial stress, you should buy it. Many buyers that felt forced to buy the last 18 months are in homes that were their fourth or fifth choice. So, even if prices go down further, it is not worth passing up the home you want if you can’t find one you love as much later. Plus, there are ways to hedge for further price drops at the buyer’s disposal.
Whenever you think about selling or buying, there are dozens of questions that need to be answered. How can I get the best price for my home? Is there a way to get a lower interest rate so I can afford more home? What price should I start my offer at in the current market? What incentives attract more buyers? The best way to get valuable answers is to ask a professional who knows the Utah market and the type of property you are interested in selling or buying. If you visit UTRERC.com with your questions, they will help you find the right agent to answer all your real estate questions.