Should I Sell My House Now? Here’s What to Consider Before Making the Decision

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Posted by Troy Elston, REALTOR on March 17, 2023

If you’re considering selling your house, you’re probably wondering if now is the right time. The decision to sell your home is a significant one, and it’s essential to consider all the factors before making a move.

In this article, we’ll go over what you should consider before selling your home, including the current state of the housing market and your personal financial situation.

Here’s a summary of what you’ll find on this page:

Is Now the Right Time to Sell Your Home?

The current state of the housing market is an essential factor to consider when deciding whether to sell your home. Housing prices in the United States, like any other commodity, are determined by supply and demand. When demand is high and supply is low, prices go up, and vice versa.

The housing market saw an unprecedented surge in 2021, with many people interested in buying homes but not enough homes for sale. However, the supply of houses for sale has improved, with 244,000 more homes up for sale in December 2022 than in December 2021 – a growth of 54.7%. Despite the increase in supply, the number of homes for sale in December 2022 was 38.2% lower than the average from 2017 to 2019.

What does this mean for you? Housing prices are still on the rise, albeit at a slower pace than in 2021. However, market conditions alone should not be the sole basis of your decision to sell your house. Instead, your individual situation should take center stage.

When is the Right Time to Sell Your House?

Here are seven signs that it’s a good idea to sell your house:

You’ve Got Some Equity on Your Side

Equity is the difference between your mortgage and your home’s current market value. If you can pay off your current mortgage and have enough equity left to make a 20% down payment on your next home, it may be time to sell. The larger your equity, the more funds you have to put towards your next property. However, if you have negative equity, you might not want to sell unless you’re avoiding bankruptcy or foreclosure. Use our proceeds estimator to check your equity.

It Will Improve Your Financial Situation

If you’re looking to improve your financial situation, selling your home could be a wise move. Downsizing to a smaller home could significantly reduce your monthly payments and bring you closer to being debt-free. Alternatively, you could use your home equity to pay off consumer debt, such as credit card debt, student loans, or car payments. But, if selling your home would lead you further into debt, it might be best to wait.

You Have a New Place You Can Live

It’s essential to have a plan for where you’ll live after selling your home. If you’re moving to a new area, you may want to rent before committing to buying another property. Ensure you have enough time to find a new place before selling your current home. Waiting until the last minute could lead to additional stress and potentially settling for less than what you wanted.

You’ve Outgrown Your Current Home

Do you find yourself wishing for more space or extra bedrooms? Perhaps you need a home office or a backyard for your pets. If your current home no longer fits your needs, it might be time to sell. Consider your long-term plans, and if your current home cannot accommodate them, it’s time to find a new place.

The Housing Market Favors Sellers

If there’s high demand for homes and low supply, it’s a seller’s market. When the market favors sellers, you may be able to sell your home for more than its worth. However, predicting the market can be challenging, so consult with a real estate agent to make an informed decision.

Maintenance Costs are Starting to Pile Up

If your home is in need of repairs, it may be time to sell. Repairs can be expensive and time-consuming, and failing to keep up with them could decrease your home’s value. If you’re not willing or able to take on the cost of repairs, selling your home may be the right choice.

You’re Ready for a Change

Sometimes, you just need a fresh start. Whether it’s to move closer to family or to try out a new city, selling your home can be the first step in making a significant life change. If you’re feeling restless, take some time to evaluate whether selling your home would help you achieve your goals.

Factors Good Time to Buy Good Time to Sell
Housing Market Conditions Buyers market (low demand, high supply) Sellers market (high demand, low supply)
Personal Financial Situation When you have saved enough for a down payment and can afford monthly mortgage payments When you have equity in your home and can make a profit from the sale
Need for a Change When you’re ready to settle down and stay in one place for a while When you’re ready for a significant life change
Maintenance Costs When the house is in good condition and doesn’t require significant repairs When the cost of repairs is high and the house’s value is decreasing
Outgrown Current Home When you need more space or a different location When your current home no longer suits your needs
Housing Prices When prices are low and stable When prices are high and predicted to continue rising

Fannie Mae’s Home Purchase Sentiment Index Report (HPSI)

The HPSI is a monthly survey that measures consumers’ attitudes toward the housing market, including buying and selling a home.

According to the latest HPSI report from February 2023, the overall sentiment toward selling a home decreased by 1.5 percentage points to 47%, the lowest level since December 2021. This suggests that fewer consumers are currently considering selling their homes.

The report also states that consumers who believe it is a good time to sell a home decreased by 3 percentage points to 42%, while those who believe it is a bad time to sell increased by 3 percentage points to 47%. This indicates a shift in consumer sentiment toward a more negative view of selling a home.

consumer attitudes toward home buying and home selling trends

In summary, the data from the Fannie Mae HPSI report suggests that the current sentiment toward selling a home is decreasing, with fewer consumers considering selling their homes and a more negative view of the timing to sell.

Therefore, it may not be an ideal time to sell a house according to this data. However, it is important to consider other factors, such as personal financial situations and local housing market conditions, before making a decision to sell a home.

Should I Sell My House Now in Arizona?

Here are the latest home sales stats for February 2023 Monthly Sales and February 2023 New Listing Inventory.

arizona armls monthly home sales chart for february 2023
Sales are up +30.9% month-over-month. The year-over-year comparison is down -26.2%.
arizona armls home inventory chart for february 2023
New Inventory has a month-over-month decrease of -2.9% while the year-over-year comparison decreased by -10.0%.

Comparing the two charts above, you can see that there has been a definite decline in inventory between June 2022 and December 2022 in the Phoenix Area. More homes are on the market today because of new listings and interest rate increases all year. Buyers are looking for deals now. Home prices are declining in all parts of the Valley but sales remain steady (as shown in the monthly sales graph.

The forecast for home prices: Based on National and local data, I believe that home prices will continue to decline – but not at the same rate as we seen in 2023. Buyers are waiting for interest rates to stabilize this year. My advice to those who wish to sell your home this year is to sell during the summer months (after May). We may have some stormy weather in the Fall.

Selling your home is a significant decision that requires careful consideration. While the state of the housing market is important, it shouldn’t be the sole factor in your decision. Consider your financial situation, long-term plans, and personal goals before deciding to sell.


Learn What Your Home is Worth.

If you’re unsure, consult with a real estate agent who can guide you through the process. By evaluating these signs, you can decide whether selling your home is the right move for you.

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Troy Elston is licensed Realtor in Phoenix Arizona. With over 20 years experience in real estate sales, Troy offers the highest degree of experience, service and integrity in the industry.
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