Real Estate Trends: Should You Sell Your Home?

The real estate market is hot! Despite an uptick in interest rates, housing inventory remains low, and it is still a seller’s market. Homeowners are receiving unsolicited offers as they watch their Zillow estimates grow. And buyers are getting out-bid by competitors offering thousands above asking, in cash, with waived inspections. If you own a home, is it time for you to sell?

We share recent real estate trends and discuss how your Washington Trust Wealth Advisor can help you make informed decisions about buying or selling real estate.

Housing prices are high and still rising. Across the country, housing prices have increased more than 20% in the past year, resulting in record highs in March. Despite a recent bump in interest rates, prices are expected to continue rising into 2023, but at a lower rate of about 6% nationally.¹

Rental fees are climbing, too. Wall Street firms and other investors have been buying up properties to rent (another factor causing upward pressure on housing prices),² and average rental incomes have surged in many regions across the country.

Average Monthly Apartment Rent

Source: Average monthly apartment rent in the United States from 2020 to 2022, by state, Statista 2022

Although mortgage rates have increased, they remain relatively low. The Federal Reserve has raised interest rates to tighten the money supply and control inflation, and mortgage rates have followed. Nonetheless, mortgage rates remain historically low (at around 5% - 6%, depending upon variables such as the amount of the loan and your credit score). By comparison, in October of 1981, the rate on a 30-year fixed mortgage reached a high of 18.4%.³

Home buyers are willing to relocate. As a growing number of companies allow employees to work remotely, Americans have been widening their home search. In the first quarter of 2022, nearly 60% of realtor.com’s listing views were from outside of the markets in which buyers currently live.⁴ Some buyers are interested in moving to lower-cost neighborhoods, others are being selective about where they live. So, if you live in a nice neighborhood, near a park, or by a beach, demand for your property may be rising!

Should you buy, sell, or hold tight? Selling your primary residence is a big decision you must be ready to make, and you need to have someplace to go. Whether you’re thinking about selling or buying a primary residence, vacation home, or rental property, your Washington Trust Wealth Advisor can help you integrate the purchase or sale into your wealth plan, talk to you about the tax implications, and connect you to resources to finance your purchase. Our full range of lending solutions includes funding your needs for credit, short-term liquidity, real estate acquisitions, and specialty financing. Follow us to learn more!