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

By Maurie Backman - Aug 12, 2022 at 9:10AM
A white stone home with a For Sale sign with Sale Pending added.

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

A tough call to make

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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A suburban street with numerous houses for sale.

1. The market is still hot

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.

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Pretty single-family house with a turquoise door.

2. Inventory is still low

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

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A tablet showing a mortgage application.

3. Mortgage rates are still reasonable

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.

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Person looking stressed while using a laptop.

4. You want to make up for a sluggish portfolio

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

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Two people happily review information on laptop screen at home.

5. You're looking to retire in early 2023

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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Person covering face behind table covered in papers, a calculator, a notebook, a pen, a mug, and a mobile phone.

6. You're struggling with higher living costs

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?

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Person shaking hands with professionally dressed person across the table.

7. You want the freedom to accept any job you're offered

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.

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Stressed person sitting on a couch.

8. You want to get ahead of a recession

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?

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Person typing on a laptop at a desk.

9. You want to move before mortgage rates climb

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.

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Person working at laptop.

10. You may want to hang onto your home in case economic conditions decline

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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Person doing calculations in a notebook.

11. You could get stuck with a high borrowing rate on a new home

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.

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The front of a charming house.

12. You'll pay a premium for a replacement home you buy

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

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Person sitting at desk looking upset with hand covering face.

13. You might lose your job if a recession hits

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.

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Frustrated person holding their hands to their head and looking at laptop screen.

14. You'll have limited choices for a replacement home

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.

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A person relaxes on floor in front of a couch, holding a laptop.

15. You're happy where you are

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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What's the right call?

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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