Sell Now Before Price Crash? Or, Wait for the Next Boom?

With the national real estate market coming down off of unprecedented demand during the pandemic, some experts are saying that it might be a good idea to sell now while the market is still strong. However, others are saying that we could see another housing boom in the next few years, so it might be worth holding on to your property until then.

So, what should you do? Sell now or wait for the next boom? In this article, we’ll point out some warning signs sellers need to pay attention to, how these signs affect your local housing market, and what you can do to make the best decision for your unique situation.

What Exactly is a Housing Market Crash?

If you’re thinking about selling your home, it’s important to be aware of any potential market crashes that could occur in the near future. A market crash is defined as a sharp and sudden decrease in prices, usually brought on by an economic recession. While we’re not currently in a recession, there is the potential for one to occur in the next few years.

Signs to Watch Out For

There are a few warning signs that a market crash may be on the horizon:

1. A decrease in home sales – This is usually the first sign that something is wrong with the housing market. If you’re seeing fewer homes being sold in your area, it’s a good indicator that prices could start to drop soon.

2. An increase in inventory – This is another sign that sellers are getting nervous about the market. If there are more homes on the market than there are buyers, prices will start to fall in order to entice buyers to purchase.

3. A decrease in home prices – This is the most obvious sign that a market crash is happening. If you’re seeing homes selling for less than they were a few months ago, it’s a good indication that the market is crashing and you should sell sooner rather than later.

4. An increase in foreclosures – This is a sign that people are struggling to keep up with their mortgage payments. If there are more foreclosures in your area, it’s a good indication that the market is crashing and you should sell sooner rather than later.

5. A decrease in home values – This is another sign that the market is crashing. If your home is worth less than it was a few months ago, it’s a good idea to sell now before prices drop even further.

These are just a few of the warning signs that a market crash may be on the horizon. If you’re seeing any of these signs in your local housing market, it’s a good idea to start thinking about selling sooner rather than later.

Local Boom vs. National Bust: Sell Now?

While it’s helpful to know the warning signs of a national market crash, it’s even more important to pay attention to your local market. After all, it’s your local market that will ultimately determine whether or not you should sell your home.

There are a few things you can do to get a better idea of what’s happening in your local market:

1. Pay attention to the news – Local news outlets are a great resource for finding out what’s happening in your area. If you’re seeing reports of a decrease in home sales or an increase in foreclosures, it’s a good indication that the market is crashing and you should sell sooner rather than later.

2. Talk to a real estate agent – Real estate agents are experts in the local market and can give you a good idea of what’s happening. If you’re thinking about selling, it’s a good idea to talk to an agent and get their opinion on the market.

3. Look at recent home sales – This is a great way to get a feel for what’s happening in your area. If you’re seeing a lot of homes selling for less than they were a few months ago, it’s a good indication that the market is crashing and you should sell sooner rather than later.

4. Compare home prices – This is another great way to get a feel for what’s happening in your area. If you’re seeing a big difference in prices from one month to the next, it’s a good indication that the market is crashing and you should sell sooner rather than later.

5. Watch for changes in the local economy – This is a big one. If you’re seeing a lot of job loss in your area, it’s a good indication that the market is about to crash. People who are out of work are usually the first to default on their mortgages, which can lead to a decrease in home prices.

Even if the national market is crashing, it’s possible that your local market is still doing well. This is why it’s so important to pay attention to your local market and not just the national one.

If you’re seeing a lot of the warning signs in the national market, but not the local one, it’s still a good idea to sell sooner rather than later. The national market can have a big impact on the local one, and you don’t want to wait until it’s too late to sell.

Sell or Wait? How to Decide

While all of these things are great macro indications of trouble looming in the housing market, they don’t necessarily mean that you should sell your home right away.

There are a few other things you need to take into account before making the decision to sell:

1. Your personal financial situation – This is the most important thing to consider. If you’re not in a good financial situation, it might not be the best idea to sell your home. You need to make sure you have enough money saved up to cover the costs of buying a new home, as well as any other debts or expenses you might have.

2. The condition of your home – This is another important factor to consider. If your home is in good condition, it will be easier to sell and you’ll likely get a better price for it. If your home is in need of repair, it might not be the best time to sell.

3. The market conditions in your area – This is where things get tricky. If the market is crashing, it might not be the best time to sell. However, if you’re in a good financial situation and your home is in good condition, you might be able to find a buyer who’s willing to pay a good price for your home.

The Bottom Line

The bottom line is that there’s no easy answer when it comes to deciding whether or not to sell your home. No one can predict the future, but there are certain signs that a market crash may be on the horizon. If you’re seeing any of these signs in your local market, it’s a good idea to talk to a real estate agent and get their opinion.