April 2022 Carroll County Home Price Update
Due to pandemic-related disruptions over the past two years, the real estate market has completely changed and seriously favors sellers. If you want to take advantage of this market and extract as much value out of your property as possible, now is the time to sell.
After a few years of pandemic-related craziness, it looks like seasonality is starting to return to the housing market. As the weather warms up in the spring, more sellers list their homes, and more buyers come off the sidelines. You can sell your home faster and for more money than usual as buyers flood the market. However, due to our extremely low inventory and high demand, the spring rush has started earlier than expected.
That’s all very encouraging for sellers, but they should also make haste because mortgage rates will rise throughout the year. These rising rates will make buyers’ offers more conservative and may reduce affordability and demand. Additionally, more sellers are likely to enter the spring market, which will increase competition.
Builders could also start to accelerate construction if supply chain and labor issues improve. That will also create more competition for people selling homes. All of these factors mean that now is the time to sell.
However, one fear is still stopping many homeowners from selling. In this seller’s market, it’s relatively easy to get your home sold for the same reason it can be difficult to find your next home. The low inventory and high demand have made it challenging and stressful for sellers to purchase their next home.
Coordinating simultaneous closings in a normal market was very common, but this market isn’t normal. What can sellers do?
Many homeowners who sell before they buy have been able to secure a rent-back agreement, letting them stay in their home for up to 90 days while they find their next one. The downside to selling first is that you’ll likely have more contingencies when making offers on your next home. In a seller’s market like this, buying first is a safer option. There’s comfort in knowing that you’ll have somewhere to go, and you won’t have to pay for temporary housing and storage facilities.
If you need funding to buy, you should consider a home equity line of credit or a bridge loan. The downside to this process is that you’ll be carrying two mortgages until the first home sells, so this may not be an option for everyone. Speak with your lender and real estate advisor to find the best strategy for your situation.
If you’re curious about what your home is worth in today’s market, you can use this home value calculator, which takes into account recent Carroll County sales:
If you have any questions about potentially selling your home, feel free to give us a call at (443) 487-6410. We're talking to both buyers and sellers around Carroll County every day, and we can help you make the right decision for whatever you decide to do.