Everyone knows that home prices have surged for the past two years and those who want to sell now after owning for many years can probably net lots of cash. But cashing out in a hot market is not a good idea for everyone.
People are looking at prices as the reason to sell, but where do you go next? There are not a lot of choices at lower prices and interest rates have increased making the payments much higher.
If you sell at top prices and think you may rent until house prices fall, you might end up renting for a very long time because prices may not decline much for many years. No one really knows where the housing market is headed but there will definitely not be a crash like the one caused by the subprime mortgages during the early 2000s. Mortgage delinquencies are down sharply as more buyers are providing larger down payments and have more savings than in the past.
When considering a move, think about what you love about your home, the neighbors, nearby retail, restaurants, medical facilities and amenities and make sure you can match those in another neighborhood or area. While your house has risen in value, so have all the other homes, so if buying a smaller less expensive one needs renovations you may not net as much cash as you thought.
Now can be a great time to sell if you need the cash to fund retirement and don’t qualify for a reverse mortgage. You can eliminate property taxes and maintenance costs but will have to adjust to a rental home, which could also be expensive in a hot market.
There are many individual reasons as to whether or not the time is right to sell. Make a list of pros and cons and begin exploring the market to see what options are available. Your realtor can help you research and evaluate your situation to assist in making the correct decision. It is certainly an important one!