I need to sell my house before the price.

The housing market is changing rapidly. Act accordingly

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Home sellers may face a closing window in today’s hot — but cool — real estate market.

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While sellers may still be taking advantage of low inventory, they should be aware that inflation, rising interest rates and the perception of overpriced homes may be taking some of the air out of the seller’s market.

There are also signs that homes are slowly but steadily staying on the market longer, which presents a tough choice for sellers: Do you gamble that your local market will stay strong enough to tempt overpriced offers, or do you hold on? Tight and wait for the next big wave?

Warning signs for sellers

The elected leaders argue that all politics is local. The same is true for real estate.

Cities and neighborhoods on demand have always bucked broad national trends. Things like quality schools, livability and access to cultural amenities will always help home sellers get top dollar.

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But the latest numbers are hard to ignore.

The latest statistics from the Canadian Real Estate Association show that national home prices fell 5.3 per cent month over month in July and the national median home price was $629,971 – down 5 per cent from last year.

Buyers and sellers seem to be waiting to see if and when the market stabilizes before making any moves. The number of homes listed also fell by 5.3 percent, suggesting that homeowners are not quick to put their homes up for sale.

However, it is a good time to sell

Although many leading indicators may indicate that we have entered a cool phase, a few critical factors make now a good time to sell – you’re ready to list.

Demand: Homes may be on the market for a long time, but demand is relatively high, and housing inventory is low compared to years past. Canada’s east coast continues to see rising home prices, and the same is true across the Prairies.

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All-Cash: If you live in a low-inventory market and buyers are outselling their properties, sellers can expect to make money — sometimes literally. The all-cash market is hot right now, which is great news for sellers because cash offers often speed up the closing process. You can even get discounts that aren’t based on reviews, guaranteeing you receive the discount price.

Rate hikes: While rising interest rates can work against sellers—higher rates mean bigger monthly mortgages—the looming increase may cause some buyers to lock in rates now. The average rate on a five-year fixed mortgage is now around 4.85 percent, which is significantly higher than a year ago when rates hovered above 2 percent.

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A good time to wait

There are good reasons to sell. But there are many who hold fast.

Your own plan: What happens if your home sells quickly? Do you have a plan for the income from the sale? Need to start hunting for your new place?

Your new mortgage: If you’re selling because you need a bigger house, this jump may not work, especially if you’re looking in a popular neighborhood or city. A new, larger property can absorb the profit on the property that was just sold and still carry a larger monthly mortgage payment.

Rate hikes (again): Those Canadian bank rate hikes can work against you as a seller. It reduces the pool of buyers by making it difficult for typical mortgage buyers to purchase your property.

Get good advice

A great real estate transaction – whether as a buyer or seller – begins with a thorough self-investigation. Why buy or sell and why now? Take these answers to an experienced agent who knows your area.

An agent is usually your best compass for what your city or neighborhood is asking or paying.

This article provides information only and should not be considered advice. PROVIDED WITHOUT WARRANTIES OF ANY KIND.

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