Many homeowners are on the fence about whether it’s a good time to sell due to the steep and rapid rise of interest rates. However, the Federal Reserve has indicated that this last substantial rate hike may be the last of its kind for some time. In fact, during the first week of November, the Fed lowered interest rates for a 30-year conventional fixed-rate mortgage from 7.08 percent to 6.95 percent. For perspective, although a 7 percent interest rate may seem high compared to the 3 percent rate at the beginning of 2022, the actual average long-term rate is 8 percent—still making it possible for buyers to purchase their dream home.

Is now a good time to sell?

Even with the recent buyer cooldown and higher inventory levels compared to those in 2021, statistics indicate that it continues to be a seller’s market where inventory levels are six months or less. Although supply in 2022 has steadily increased, the number of listings on the market still remains low—down by almost 42 percent compared to 2019, and the number of days on market is eleven days shorter than prepandemic levels.

Notwithstanding the current slowdown in appreciation, homeowners continue to build home equity. In fact, recent data for the third quarter of 2022 shows that despite the shift from a booming seller’s market to a more temperate one, 48.5 percent of homeowners are equity-rich, meaning they have at least 50 percent equity in their homes, numbers which have not been seen in several decades. Therefore, many homeowners could be sitting on a lot of equity due to the rapid price increases over the last two years. If you’re a homeowner and believe you have a fair amount of equity, this is a great time to speak to your real estate agent about potentially selling your home.

Many sellers have a more positive attitude toward listing their homes and outnumber others who say it is not an ideal time. While this gap is beginning to close compared to last year’s numbers, 59 percent of consumers believe that the housing market favors sellers (still down from 77 percent since June 2021)and that pricing will continue to moderate.

Although buyer demand has waned a bit, it is still a highly competitive market making it more favorable for sellers. As long as your home is priced correctly, it will sell quickly. Therefore, if you have been considering making the leap to list your property, this may be an ideal time.

What is your motivation to sell?

Your region’s current supply and demand levels may sway your decision on whether it’s a good time to sell your home or should take a wait-and-see approach. There are several reasons why homeowners choose to sell. If you have contemplated putting your home on the market, before making your decision, determine what your motivation is for selling. Whatever your answers are, they’ll help you figure out what your next step is.

• Do you need to alleviate financial stress?
• Have you outgrown your home and want to upgrade to a larger size?
• Are you an empty nester and want to downsize to a more manageable space?
• Is there a lot of equity in your home, and do you want to cash out?
• Are you relocating for work or personal reasons?

Don’t let the current high-interest rates dissuade you from selling. Even with interest rates on the rise, inventory is still historically low, and buyers are actively pursuing purchasing a home. Be sure to consult with your real estate agent to find out more about selling your home and how to procure the most amount of money in the least amount of time.