Is it time to sell?
During the previous recession, the global economic slowdown had the greatest impact on the real estate market. This impact was felt for years and greatly impacted homeowners. Selling now may be an opportunity to get the most equity out of your house as we head into uncertain times.
Situations Where It Makes Sense to Sell Your Home Before a Recession:
- Your Current Home Is Not Meeting Your Needs
Avoid being trapped in your home if it does not meet your needs. Whether you need more space or less or are looking to move to a new location. Now is the time to make the move while there is ample opportunity in the market. As the market continues to change it will become more difficult to buy and sell.
- Your Home Needs Repairs
If your home needs repairs and you do not want to take this on, then now is the best time to sell while home values have appreciated. A recession will make repairs more expensive, and your home less attractive to potential buyers.
- The Home Is Not Your Primary Residence
If you inherited a home, have investment properties, or are sitting on unwanted land. Now is the best time to sell to get the highest value. You would not feel the effects of having to find a new home because it is not your primary residence.
- You Are Looking to Downsize or Will Buy Your Next Home in Cash
This is the biggest advantage in this market. You can get the most value out of your current home and take advantage of the property price drops while avoiding the rising interest rates.
Sell Your House Fast for Cash. Any Condition. On the Date You Pick.
What is a house market recession?
A recession is distinguished by a decline in economic activity over a long period of time, as well as a rise in unemployment and decrease in consumer spending. When house sales fall for six straight months, the term “housing market recession” is used. It causes a slowdown in home sales and new home building. The looming real estate recession has driven up interest rates and building costs. According to published data, sales of existing homes decreased by 5.9-20.2% from a year earlier.
How would the recession impact the housing market?
Property Price Drops
The market is aware of the recession and the possibility of a downturn following the abrupt increase in real estate prices during the covid-19 period. Real estate prices have decreased because of rising interest rates and declining property sales. If you are thinking about selling, the greatest moment to get the most value out of your home is now. Selling your home while it has still appreciated in value gives you the opportunity to get the most value, pay down those debts, and avoid getting trapped before a recession.
Rising Mortgages rates
Mortgages are a type of financial instrument that give homebuyers loans. When mortgage rates are declining it makes purchases more accessible for consumers which is a fantastic opportunity for homebuyers. But occasionally, markets behave in the other way, as is the case right now, when interest rates are rising rather than falling. The cost of obtaining a mortgage to buy a property increases because of the rising rates. This would be a great opportunity if you are looking to downsize and can purchase your next home for cash. You would benefit from the falling housing prices and be able to avoid high interest rates without the need for a mortgage.
Less Active Housing Market
When recessions hit, people tend to hold onto their money and “wait it out.” In these situations, less people are looking to buy & sell their home. The market is still hot right now, but recent trends show that it could start to cool off as winter approaches and a looming recession is near. If you are in a situation where you need to sell or might need to soon, now is the best time to get the most value out of your home and have the best opportunity to find a home that fits your needs.
There are pros and cons to selling before a recession. It’s all dependent on your situation. Selling now gives you the opportunity to get the most value out of your home and avoid selling at a potentially lower price in the future. In these tough times there is a lot of uncertainty. If you are in a situation where you have debts to pay off or are uncertain if you will be able to pay your mortgage in the future, now may be the best time to sell and find a home that better fits your needs.
If this sounds like you are you are interested in seeing what your home is worth right now. Fill out the form below. We have a team of experts with over 30 years in the Indianapolis market. We find the win-win situation even in tough times. The best part about our process is it’s fast, easy, and you do not have to worry about paying for repairs, closing costs, or commissions. Any situation. Any Condition. We’ve Got You Covered.