Portion of content from Maurie Backman - The Ascent

A whopping 69% of Americans think now is a good time to sell a home, according to the January Fannie Mae Home Purchase Sentiment Index. By contrast, only 25% of Americans think it's a good time to buy one.

But while the housing market, especially locally, strongly favors sellers today, there are no guarantees that continues to be the case for all of 2022. If you're thinking of selling, you may want to get the ball rolling sooner rather than later.

Don't wait to sell

Right now, mortgage rates are sitting at relatively competitive levels, historically speaking. But rates are already higher across the board than they were at any point in 2021.

There's a good chance mortgage rates will continue to increase from month to month this year. For one thing, they've been so low for so long the only place for them to really go is up. Also, the Federal Reserve has made it clear it has plans to increase its federal funds rate.

The Fed does not actually set mortgage rates, or any consumer interest rates, for that matter. But its actions can influence rate activity so that in the wake of its plans, consumer rates could climb. That could, in some ways, be a good thing, since it can mean more generous interest rates at banks. But it could also mean higher borrowing costs on everything from mortgages to credit cards to personal loans.

If mortgage rates continue to rise this year, it could lead to less buyer demand. Once that happens, home prices could start to stabilize or fall slightly. If you want to capitalize on the chance to score as high a price as possible for your home, you may want to list it sooner rather than later.

The biggest reason is the housing market is beyond starved for inventory. One reason for that is that sellers have been hesitant to list their homes during a pandemic. As the country largely learns to cope with the virus rather than impose restrictions around it, that hesitance could spur action -- and more competition. Another reason is the ongoing lack of inventory lacks solid options for potential sellers who may be looking to step up into a home with more space or an upgrade in location. 

Now versus later

If you're not sure if you're ready to sell your home this year, consider all the facts and your options before deciding on what to do. Consult a realtor you trust to get a market analysis of your home as it stands today. It could pay off to list now as opposed to waiting.

It's clear that it is a great time to be a seller. But there's no guarantee the market will stay that way for long. And if you wait to list your home, you might end up regretting it. Spring and summer generally bring more listings, and while it is likely to remain a robust market for sellers, the competition on the part of buyers might not be as fierce as it is presently.

The local angle

The number of listings in our market are down almost 30% from the levels of January and February 2021, when they were already at 30-year lows. The lack of suitable listings in Oakland and Wayne County combined with buyers who have saved up during the pandemic and are trying to 'beat the clock' before interest rates rise above 4% have created a market that at present is even more competitive than what we've experienced over the last 12-18 months. Further rises in interest rates could put some potential buyers on the sideline, thinning out that competition as more listings come to market for spring and summer. From the standpoint of listing, it may be time to strike while the iron is hot.