One of my favorite lines in real estate is “The best time to buy was 30 years ago; the second-best time to buy is today.” In five or 10 years from now we may say the best time to buy was in 2021.
Selling, on the other hand, is a different story. Selling can be a lot more tricky, similar to stocks or crypto. “Should you buy more Bitcoin, or sell while it’s still high?” “What if it goes up to six figures by end-of-year?”
It seems that everyone has an opinion on the property market. While some of the advice may be valid, most of the information floating around regarding selling your property may not be backed by data or may not necessarily apply to your current situation. True, the market is flaming hot, houses are selling for more than a few years back. Does this mean you can make the most money? Very likely. However there are more things to take into consideration when deciding to sell:
Your Circumstances
Your circumstances—family dynamics, finances, the state of your property—will all influence the outcome of the sale. If you are looking to downsize, you should consider the prices of the homes you would want to buy. If you can sell for top dollar, you may need to fork over top dollar to buy as well. The same applies if you are looking to upsize. If, however, you are looking to retire or move abroad, this changes the dynamic entirely.
Your Reason for Selling
Your reason for selling will also factor into whether you should list your house now or wait. If you are selling to profit from the real estate market, you should work with a real estate agent to accurately time the market. You can also monitor historical data to decide when to list. In the event you’re relocating, you should decide to sell when the value of your property is offset by the value of the area you are moving to.
For homeowners who are downsizing, selling during a buyers’ market may be ideal. You are likely to receive more offers, even if they are not at the amounts they may be during a sellers’ market. But the swift transaction will make downsizing a breeze.
Your Neighborhood’s Property Market
Many advice articles focus on the entire U.S. housing market. What’s unfortunate about this kind of approach is that it doesn’t highlight what’s happening within a region. Areas like Texas may be experiencing unheard-of price growth due to the California migration, but other states may be in a slump as COVID still overwhelms the region. The idea that the broad market data about your state is relevant to your case isn’t ideal. You need data about your neighborhood, as this will most accurately reflect the nature of your local property market.
Taking a Closer Look at Your Region
As a real estate broker in the Bergen County and New York City markets, my analysis of these two areas creates a comprehensive picture that can help you make the right decision.
Selling a Home in Bergen County
Bergen County differs from New York. Instead of the property market taking a sharp nosedive at the beginning of the pandemic, the county saw an influx of buyers looking to move away from the city. Homeowners from Manhattan—and similar neighborhoods—recognized the value offered by the county. These buyers, spurred on by a remote working culture, enabled Bergen County to achieve the highest average property price in the county’s history, with an increase in property value of 9.9% since last year.
This data highlights that the current housing market is the ideal time to sell. Homes are selling at historically higher prices, and there is considerable buyer interest for homes in the region.
Selling a Home in New York City
COVID had a sudden effect on the city, causing the housing market to take a steep nosedive during the height of the pandemic, the likes of which no real estate agent could expect. This wasn’t all bad news; it enabled some keen buyers to purchase property in the area that allowed the market to remain relatively stable.
The market is currently experiencing a strong rebound. The city’s property prices have increased by 2.5% compared to the same period last year, according to data from Zillow. This data reflects my experience as well as that of other realtors. We’ve seen both the price and sales volume increase, and days on the market decrease.
The upcoming month or two will possibly be the best time to sell for savvy sellers, as there will be less inventory to contend with since other sellers are hesitant to list.
While this analysis focuses on selling a house in New York and Bergen County, if you don’t reside in these areas, make your decision by analyzing historical data from the past six months and cross-referencing with the experience of your local agents.
Levy Tewel is the founder and team leader of the Tewel Team at Compass. He has overseen over 1,000 closed real estate deals in the last nine-plus years. Levy can be reached at 201.477.0117, [email protected], www.TewelTeam.com.
