Selling a house in the correction period may be an emotional rollercoaster for some people. We have to ask the question if you want to sell your house or buy a house and if the price correction is even possible and when it will happen. I think price correction may happen if the stock market will drop even more and I think it will.
Last couple of months we can see the stock market start going down and in my opinion there is a healthy pullback. We can’t go up all the time. There will be a time where people will start taking profits from their investments and that will cause the market to go down a bit. How low? We don’t know. If the fed will prop the market with stimulus checks then markets can recover quick. On the other hand we know inflation is really high and printing more money will not help the economy in the long run. Giving stimulus money for people at this stage in the markets is like kicking a can down the road.
If you are looking to sell your house then I think now is the last moment to get top dollar for your house. It’s all over the news that mortgage rates have skyrocketed from a year before and it’s more expensive to buy a house now, than twelve months ago. Every time mortgage rates go up the pool of homebuyers shrinks meaning there are less people that qualify for the loan. Some people just can’t afford to pay extra just because rates are higher.
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Buying a house may be a good time when markets are declining. First off you need to know what your goal is when buying a home. If you are looking for something for longer like 10 years or more, I think you don’t have to worry about it. If the rates will go up more, you are lucky that you locked in a lower rate and on the other hand if the rates will drop then you can always refinance your home and you are good.
My advice would be not to wait for corrections if you are looking for a longer term. You will be fine either way. If you get transferred for a job often, let say every couple of years, then maybe renting a place would be better for you. Yes it will be more expensive, but if you know job transfer may happen soon, renting would be a better option in this situation. You can always try to get a better deal when buying a house. I will share a little secret with you about the one ways you can buy a house for a better price.
When looking for houses to buy, ask your agent for properties that have been on the market for more than 30 days. If sellers can’t sell their house that means something is not right. It may be two things: price or condition. So basically it’s one and the same thing. From my experience it is easier to negotiate the price if the property is longer on the market and if you have a great agent he will negotiate a good deal for you.
If you are looking to sell your house fast for cash call our office at: 847 242 2212 or send us an email at: info@moderntimeshomes.com