3 Reasons Not to Sell Your Home in 2023

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You may want to stay put a while longer. 

There’s a reason so many home buyers are pretty weary going into 2023. Real estate inventory has been very tight this year. That’s given sellers a clear upper hand, and it’s been keeping home prices elevated.

If you sell your home in 2023, there’s a good chance you’ll manage to walk away with a pretty decent price for it. And you may find that you’re able to find a buyer quickly, since there’s not a lot of competition.

But in spite of that, staying in your home another year could actually work to your benefit. Here’s why you may not want to sell your home in 2023.

1. You might have trouble finding a replacement home

Because housing inventory is low, you can probably get away with charging more for your home than usual. But remember, once you sell your home, you’ll need another place to live. You might have a hard time finding a suitable home given that there’s not a lot of inventory to go around.

In fact, let’s say you put your home on the market because your goal is to upgrade to a larger, more updated home in your neighborhood. If no such home exists in your price range, you’ll be putting yourself in the position of having to deal with moving only to settle for a new home you’re not in love with.

2. You might get stuck with a really high borrowing rate

Mortgage rates rose sharply in 2022. And so if you sell your home in 2023 and need to buy a new one, you could get stuck with a really high interest rate on your new mortgage. That could make your replacement home really expensive and difficult to keep up with.

3. You don’t want to change your financial picture when a recession could strike

Selling a home and moving to a new one means taking on a whole different set of expenses. Not only might your mortgage payments increase, but your property taxes and homeowners insurance costs might rise, especially if you’re upsizing to a larger home. And you may end up spending more on things like maintenance and repairs.

Given that many financial experts have been warning about an upcoming recession, you may not want to make such an extreme change at a time when economic conditions have the potential to deteriorate. Of course, if your goal in selling your home is to move to a less expensive property, this may not be an issue. But if you’re selling with the intent to upgrade, you may want to think twice before taking on a whole new set of housing-related bills.

Selling your home is a big decision, and it’s important to do it at the right time. Keep these points in mind if you’re thinking of selling your home in 2023. While doing so could work out well for you, you might also struggle with low inventory, high borrowing costs, and major financial changes during precarious economic times.

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