Should I Sell My House Now or Wait?
What’s driving today’s high house demand? Should I sell my house now or wait? These two questions often cross your mind when thinking of selling a house. Understanding and determining the answers for the two can help you decide whether to sell your house now or later.
Housing is – in broad terms, made up of buying vs renting. Each has its pros and cons. However, the factors that determine buying and selling of a residential property, specifically price, are complex. Arigna Homes in Silicon Valley has some insight into buying a house. According to Gina, the things to be looking at as a seller are:
Things to Consider When Buying a House
Buyers in your location
Different areas have different trends. However, there are peaks and valleys in the number of buyers in any zone. Silicon Valley is a great example as it grew exponentially with the explosion that occurred in the larger tech space. Many corporations relocated to the region, and people followed, resulting in high demand for housing. This demand remains to date.
How many people are looking for homes?
This is a dynamic number in any town as circumstances change. For instance, families grow, children go off to college, or the buyer’s financial position can change. People also find they simply don’t like their neighborhoods or there could be traumatic events, like death or divorce. This factor may lead an individual into looking for a new house.
Capital Gains Tax
Capital gains tax plays a significant role in the decision to buy or sell. It is calculated based on the profit made on the sale. The IRS gives sellers capital gains tax exemption on the first $250,000 and $500,000 for singles and married people, respectively. A financial advisor’s input must be obtained before deciding on this aspect. It is important to note that the exemption has strict rules. For instance, the limitation to apply for the exemption after every two years. This factor plays a role in flipping houses and people who move frequently.
Buy Vs Rent
The rent vs buy question benefits sellers, as more renters looking to buy than homeowners looking to rent. This trend is not static because economic circumstances change. When the economic climate deteriorates, the demand for rental housing increases. The case is so because people look to the built-up equity in their homes as survival means. However, as rentals increase due to high demand, it becomes more viable to buy a home.
Interest Rates
Interest rates were reduced during the Covid-19 pandemic to increase economic stability, bringing house prices down. Mortgage rates are now increasing slightly, restoring the selling prices in many areas. The economy is hard to predict, but its effects are almost always visible in the housing market. Stock markets are recovering from the pandemic. As a result, house prices are stabilizing with time.
The Number of Buyers
As more buyers are entering the market, the building costs increase and local town planning regulations become more complex. As a result, the cost of buying or selling a house is significantly high.
Differences in Housing Trends
Trends differ from one region to another. However, the increase in house prices across the US from 2000 to 2021 is about 53.5%. In Silicon Valley, this increase is around 65%, despite starting from a higher base price.
The question, “should I sell my house now or wait?” is highly personal. Millennials are a large group of buyers at the peak of their buying age. They are replacing the baby boomers who are looking to scale down. You need to consider the needs of various generations in the market – whether they are scaling up or down. Even those looking to buy something unique like the haunted house will find their dream dwelling.
Final Thought
What if I want to sell my house – where do I start? Contacting an expert professional realtor is the first step. If you’re looking to sell your house in Silicon Valley, the Arigna Homes team is here to help you. Contact us now for professional guidance.
