I used to say I’d sell my home as soon as I could sell it for what I bought it for during the housing bubble. Now, I’m eating my words. As people in my area list their homes at higher and higher prices, I’m planning to sit this one out. I’ll sell my home in another year or two once it’s truly appreciated in value. According to a recent article by MarketWatch, home prices are up sharply. At the same time, sales of single-family homes are not as strong.
Faking it until they make it
I think the fact that people are pricing their homes so high may actually be a good thing for sellers in the long run. Home sale prices will eventually catch up to the now-inflated list prices. Another MarketWatch article reports that home inventory is up. In fact, the most sellers put their homes on the market in almost two years. People in my neighborhood are listing their homes because two years ago they could only dream of selling a home at today’s list prices.
Being the last to sell
Some of the homes in my neighborhood have sold within a few days, which is reminiscent of the beginning of the housing bubble when I sold my townhome. At that time, Realtors came door-to-door asking people if they were willing to list their homes. Coincidentally, I had the first Realtor knock on my door just a few weeks ago. She claimed a home in my neighborhood sold as soon as it hit the market. If I wait for other homes in my area to sell at higher prices, I should be able to get more for my home when I sell.
Selling to millennials
One of the things holding back the housing market, experts say, is the millennials. The would-be first-time homebuyers have too much student loan debt. Also, lending is still strict. Since I know most of the people buying home in my neighborhood are millennials, I’m going to stage my home with younger buyers in mind. An article by Zillow says millennials want practical space. They view formal dining rooms as wasted space. Since I have an eat-in kitchen area, I’ve converted my dining room into an office.
Eventually, more millennials will be able to buy homes. As they do, members of Generation X such as me can become step-up buyers. If the timing is right, I am hoping to get a deal on new home construction. In real estate, it pays to be patient.
More from this contributor:
What We Gave up to Buy Our Dream Home
I’m Happy in our Smaller Home
First Person: Financial Setbacks for My ‘Sandwich Generation’
