Strategies for sellers to maximize profit in 2024

Have you heard someone saying this?

“Selling a house in 2024 will be difficult because of this high interest rate.”

Well, that statement sounds like professional and reasonable to believe, but actually that’s only half correct diagnosis about the market in 2024.

Today, we will talk about real estate market in 2024, especially in seller’s aspect.

With this information, you can make a correct strategy that can maximize your profit.

Is the interest rate high? YES, IT’s High!

Yes, it’s high. today’s interest rate of 30-year fixed rate mortgage average is 6.69%.

But, is it “REALLY” high?

It’s true that today’s interest rate is the highest in current 23 years. But the period when the interest rate was lower than 5% is only between 2009 and 2022 in history. Any other period shows the interest rate higher than 5% as the chart shows below. See? the current interest rate is not high at all compared with previous interest rates.

Don’t Freak Out, It’s Just Normalized Interest Rate

Therefore, I would say current interest rate is “Normalized” again.

People was shocked in 2023, as interest rate goes up.

According to MLS 2023 Maryland report, it seems majority buyers postponed their home purchasing plan.

In deed, monthly home sales number in Maryland dropped down to the bottom in 2023 compared with current 5 years market performance, recording the lowest since 2014.

In 2024, Prospective buyers will realize the high interest rate won’t make house price cheaper

It’s been so long since we saw the interest rate higher than 6%. So, it’s comprehensible that people postponing their house purchase event until they figure out how market is running. But, it won’t take for long until people realize the average house price will keep increase regardless of the interest rate change.

Looking at the historic records, house price doesn’t seem like decreasing due to higher interest rate. House price rather decreases for certain economic events only for temporarily, continuing to increase in long-term.

So, if you are planning to sell your property in 2024 in Maryland, you should consider the followings more than considering interest rate.

• Determine desired price considering house inventory in your area.

• If the first offer you receive is unsatisfying, consider rejecting the offer and don’t rush.

• If your property is considered as a house for high-income family, wait for the right offer.

There are many strategies we can employ, for maximizing your profits.

If you want to discuss it, just simply call me!

2024 is going to be the right year to sell your property if you have the right tactical decision.