Real Estate Matters: 2023 New Year’s resolutions for sellers
Every year, Ilyce and Sam offer their readers New Year’s resolutions for home buyers, sellers and their personal finances. These are their 2023 home seller resolutions.
We feel like a broken record, but 2022 was still one of the best years on record for home sellers.
Despite mortgage interest rates rising at an all-time blistering pace, according to the Federal Reserve Bank of Dallas, home prices continued to rise all year. According to the National Association of Realtors, a massive U.S. housing shortage meant that there were still not enough homes to buy.
It’s simply a question of supply and demand, as the economists like to say.
But times might be changing, at least a little. As 2022 ended, mortgage interest rates came down a bit from recent highs, and in some places, home values seemed to be declining as well. It can be tough to tell what’s really happening with housing prices, since the average could swing significantly if more high-end homes or lower-end homes are sold.
The real question for real estate industry observers is what will happen if the Federal Reserve moves the federal funds rate higher. The Federal Reserve Bank has indicated it will continue to raise the federal funds rate in 2023, though perhaps at a reduced pace. Fitch Ratings, a registered Nationally Recognized Statistical Rating Organization (NASRO), expects the Federal Reserve to bump up the federal funds rate by 25 basis points (a quarter of a percent) at its February 2023 and March 2023 meetings.
Mortgage interest rates may go higher as a result. But because of the lack of demand, sellers will be in the driver’s seat for some time to come. That’s not good news for home buyers. Or for the agents and brokerage firms who represent them. But, it’s good for anyone thinking about selling (as long as you don’t have to turn around and buy on the other side).
To maximize your sales price, here are some home seller resolutions you may want to adopt:
Home Seller Resolution No. 1: Price your home correctly to generate the most interest.
Bidding wars were extremely common during the pandemic. While those are declining, you can still generate significant interest by pricing your home competitively. Pay attention to the options your listing agent brings to the table.