Viewing a single comment thread. View all comments

__looking_for_things t1_iu9zzr7 wrote

If you're still answering questions, I'm thinking of selling and leaving RVA but I'm unsure if now is smart. I don't live in a popular area (outer edge of church hill) but my home is a starter home so sub 225k and only 3 yrs old. Or if waiting until spring would be better.

2

Kindly_Boysenberry_7 OP t1_iua21zi wrote

Here's the pros/cons of selling now:

PROS: Less inventory available than there will be in Spring, especially in the entry level price ranges.

CONS: Not as many buyers due to the season, but also due to the interest rate rise. And that's compounded by the fact that first time buyers are the most sensitive to the impacts interest rate increases have on their buying power. It directly erodes their buying power.

That said, the Fed has already signaled they are going to increase interest rates again. So the problem is getting worse, not better. Yet another real estate saying: The best time to sell was yesterday, the next best time is today, and the worst time to sell is tomorrow.

My recommendation is do what you feel most comfortable with. Some of that may tie into how badly you want to get out of RVA. Know that rates are likely to increase again, and while we are predicting impacts, making our best informed guesses, they are just that. We unfortunately have no crystal ball.

2

Charlesinrichmond t1_iua29yq wrote

spring will almost always be better for sellers. The rule of thumb was always be on the market when the azaleas are blooming.

2

Kindly_Boysenberry_7 OP t1_iua3b6h wrote

I have to say I disagree this year, with the already signaled rate rises. I think upper level price range stuff - $700,000+ seems to be about the break point - will be better to wait until the Spring, but stuff that is in the first time buyer price range might be better off selling sooner rather than later.

It's certainly going to be interesting to see what happens. I am assuming the investors are waiting on the sidelines with baited breath.

3

Charlesinrichmond t1_iua6hiv wrote

sooner even with 30 year rates already at 7? I don't see them going that much up from here, 8 would be the worst and I'm not sure we see that. So why not wait for more buyers?

10 year is 4.01 I note. So room for yield spread compression

2