Chris Taylor

NEW YORK (Reuters] – Lee Adler, a seasoned observer of U.S. realty markets, has seen things go up over the years.

It seemed the perfect time to move his stateside house after Adler moved overseas to Nice in France just before the pandemic. Within a month, his West Palm Beach home sold as he was alone.

Adler, 71 years old, said that he felt as though he was at the wheel of the vehicle. At my asking price, I got a cash deal with no contingencies. My asking price was 40 percent higher than it would have been a year ago.

Although the hot housing market is not great for buyers it’s great for sellers. The S&P CoreLogic Case-Shiller Index recently reported national home-price gains of 18.8% for 2021, far outpacing even red-hot inflation numbers.

Owners who are still pondering whether they should sell might want to consider selling. Realtor.com actually has a specific tip about when you should list: Week of April 10-16.

A lot of factors have shifted the balance in favor of sellers, such as the current mixture of buyers eager to buy, low inventory, and historically low mortgage rates.

Danielle Hale is chief economist at Realtor.com. “Mid April will place sellers on the market just before a huge surge in listings for May,” she says. They will then be able capitalize on large buyers who aren’t satisfied by the houses for sale.

There are many reasons why the market is expected to cool down in the future. High interest rates can impact housing affordability. Hale says that the monthly average mortgage payment has risen significantly in recent months.

If regular buyers cannot afford as much per home, investors – who comprised a record 18.4% of the market in 2021’s 4th quarter, according to real estate brokerage Redfin (NASDAQ:) – likely will not be quite as interested either. Hale states that current projections for home-price growth in 2022 are only 2.9%.

Redfin’s chief economic officer Daryl Fairweather stated that “this year buyers came out in early to avoid rising mortgage rates. Therefore, now is a great time to sell.”

These are my thoughts:

SPRING RUSH: Take Advantage

Spring is the busiest season for buyers and sellers: Parents do not like to move families after the school year gets underway in the fall, and many people – especially in colder climates – are not fans of moving in winter.

Hale advises, “Get going right away. There are likely improvements that you would like to make in your home to improve its appearance.”

PRICE IT RIGHT

Given recent gains in the real estate industry, you may have big eyes filled with dollar signs. If a property’s price is excessive for the market and sits there for too long, it can become stale. This is how the interest rate rises could backfire on you.

Fairweather states that it’s better to underprice the property than go overboard. This is because homes at high prices are currently getting many offers. But if the mortgage rate moves higher next week, you run the risk of being overpriced and losing your home to the market.

LEARN YOUR LEVERAGE

As the saying goes, real estate can only be bought and sold in a local area. When it comes time to set the terms and conditions for a deal, you can benefit from being in an area with high demand and low inventory.

Around 15% of deals right now have waived contingencies for issues like inspections or financing, says Fairweather – a much higher level than before the pandemic. Hale also says that deals close quickly, approximately 17 days faster than in the same time last year.

THINK OF THE NEXT STEPS

Even though you might be able to sell your home at an incredible price, you will still need to live somewhere. Rents are also on the rise, just like housing prices.

A big move is best for people who do some real estate arbitrage. This could be an empty nester looking to downsize or someone who wants to reduce their living costs by working from home.

Fairweather believes that the real winners are those who move to more affordable houses from an area where they are expensive.