We are all witnessing a real estate market that is overheated. Will this last? Does it make sense to "time the market" so that you catch the very peak price for your home?
First, an explanation of why homes are selling so fast with prices moving up at a 5%-7% pace per the last two years.
Homeowners are holding off putting their home on the market because they either cannot find another property that meets their demands, or staying in the home they love waiting for the market to change direction.
My expectation from my experience tells me that the real estate market is a moving pendulum, always moving from one direction to the other. Never stagnant. We are starting to see some signs of a slow down due to time of year and buyers frustration in not being able to get an accepted offer with so much competition. Many buyers have chosen to rent and wait for the the market to slow down and prices flatten out.
I believe so many baby boomers and parents have put off selling, but age is creeping in with the thought of downsizing some time in the near future. This means that a huge influx of homes will come on the market and cause an over supply, bringing prices back down a bit. Looking at the age of the boomers (58-72), many will retire and choose to downsize in the very near future.
Therefore, if you are waiting for the market to peak, remember that when you sell there are no capital gains for most sellers (exemption is $250,000 of gain for a single homeowner and $500,000 in gain for a couple). When you sell, you will invest the money into property, stocks and bonds or combination of the two. No matter what happens to the real estate market, what you buy and what you invest will probably all go up or down at the same time. Therefore don't wait if you are wanting to move to improve your lifestyle. If you love your home and want to stay, there are many services available allowing you to stay in place if your home meets all of your physical and psychological demands. Try to look at least 5 years down the road as to how you think you will be in both health needs and lifestyle wants. Don't wait until the last minute to let fate make your decision!
Please let me know if you have any questions or feedback regarding this article or if you are looking for a current market update of your home. I can email homes like yours that just sold to you to give you some idea as to what is going on in your neighborhood.
All the best from Bruce and Jeanne, Senior Real Estate Specialists