15 Reasons You Should -- and Shouldn't -- Sell Your Home During the Second Half of 2022

The decision to sell your home is a big one. After all, it will mean packing up your belongings, finding a new place to live, and leaving behind a world of memories. Selling your home during the latter part of 2022 could work to your benefit -- or not. Here are some reasons you should and shouldn't go that route.

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Right now, buyer demand is very strong. If you sell your home in the next few months, there's a good chance you'll command a price you're happy with. And that could give you the freedom to upsize to a larger space in your next home.

Because the housing market still lacks inventory, there's a good chance you'll manage to find more than one interested buyer if you list your home in the coming months. That could result in a bidding war. And while bidding wars are bad for buyers, they commonly lead to higher sale prices for sellers.

ALSO READ: 3 Bidding War Strategies to Use in Today's Housing Market

Mortgage rates have risen substantially since the start of 2022. But they're still in a place where they're reasonably competitive. That could change down the line, though. And if rates climb a lot, it could drive buyers out of the market. That's a situation it pays to get ahead of.

Many investors have seen their stock portfolios plummet due to recent market volatility. If that's impacting your financial plans, then selling your home could be a smart bet. If that sale frees up much-needed cash, it could give you the flexibility to leave your portfolio alone and ride out this downturn.

ALSO READ: What History Shows Us About Market Downturns

Many people opt to downsize ahead of retirement. If you're pretty close to wrapping up your career, it could pay to downsize now while buyer demand is still strong. Waiting too long could mean getting less money for your home.

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Many people are having a hard time making ends meet due to rampant inflation. If you're struggling with bills, it could pay to sell your home in the coming months if you have a lot of equity in it. You can then move to a less expensive home and take some pressure off.

ALSO READ: Should You Keep Money in Savings When Inflation Is Surging?

Right now, the labor market is red-hot, and job opportunities are abundant. If you want the option to pursue any offer you're given, then it could pay to sell your home sooner rather than later. That way, you won't be tethered to a specific location.

For months, financial experts have been warning of an impending recession. If that happens and jobs are lost, it will no doubt open up the real estate market by narrowing the buyer pool. That's not something you want as a seller, so it pays to list your home before economic conditions worsen.

ALSO READ: We're Technically in a Recession -- but Does That Matter?

Mortgage rates could rise if the Federal Reserve keeps moving forward with interest rate hikes. If you're looking to sell a home and use your proceeds to buy a new one, you may want to do so this year. That way, you'll be in a position to lock in an interest rate on a new mortgage that isn't outrageous.

If a recession does hit in the near term, the last thing you'll want is the uncertainty that comes with owning a new home. As such, you may want to hold off on selling your home during the second half of 2022 and stay where you are. If you can afford your mortgage and property taxes, you might appreciate that stability.

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If you sell your home, you'll need someplace to live. And that could mean having to apply for a new mortgage. Mortgage rates, however, could easily jump over the next couple of months, making the latter part of 2022 a bad time to sell and then buy. If you're comfortable in your home, it could pay to wait a few more years and see whether borrowing gets less expensive once the Federal Reserve gets less aggressive.

Even if you manage to command a high sale price for your home in the next few months, what you gain in that regard, you'll lose in the form of having to pay more for your next house. And if you're upsizing, you could end up losing out financially. It could pay to wait until the housing market opens up some more.

ALSO READ: 4 Reasons Not to Upsize Your Home

If the U.S. economy starts to slump in a serious way in the coming months, you could end up on the chopping block job-wise. And if you're unemployed, getting a mortgage could be a challenge. As such, you may not want to sell your home during the second half of 2022 because if you lose your job and can still afford your mortgage, you'll have the option to stay put and ride things out.

You may want to sell a home that doesn't meet all your needs. But if you plan to sell and then buy in the next few months, there's no guarantee you'll find a replacement home that checks off the right boxes, either. Housing inventory is still pretty low and won't necessarily rise a whole lot between now and the end of the year. Waiting beyond 2022 to sell and then buy could make it easier to finally snag your dream home.

There's a lot of pressure on sellers to list their homes in the coming months because they still have the upper hand in the housing market. But if you're actually happy with your home, there's no need to succumb to that pressure. Instead, stay put and enjoy the various benefits your home offers, whether it's a spacious yard, an updated kitchen, or proximity to family and friends.

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Presented by Motley Fool Stock Advisor

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It's easy to make the argument that the next few months are a good time to sell a home. It's also easy to argue that the latter part of 2022 is not a good time to sell or make any moves. Ultimately, you'll need to think about your personal goals and circumstances when making your choice.

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