Sell NOW or Wait till Spring ?

Question

Hi bp members ! I was planning on listing my condo in December but have gotten a lot of feedback from some agents lately telling me to hold off and wait until spring to try and sell it. I have been living here for the past two years and have been waiting for the two year mark to list it so I will not get hit with capital gain taxes. January would mark two years, but I figured if I list the place in December and get an offer it would take some time to finalize everything and the sale would technically be in January. What do you guys think?

Thank you!!

Dung Nguyen · Answer

@Wyatt Franta Thank you !

Wyatt Franta · Answer

Hey Dung,

Historically, the housing market has performed on a set pattern almost every year. The end of the year is typically the time where the market shifts toward buyers and property value drop to reflect the lower demand. You'll start to see "Is the next housing bubble coming?" on real estate forums and crummy Realtor Facebook pages to get you involved in the market around this time of the year as well. Home prices begin to surge after the holiday season typically around the middle to end of January and peak during Summer months. They temporarily cool off during tax season but recover quickly after.

To add onto what Ryan mentioned in regard to interest rates, they can be a double-edged sword. On one hand, lower rates allow entry to more buyers. On the other hand, higher rates increase buyer desperation. If they don't buy now, rates could jump too high and they could be stuck renting for years to come.

My opinion would be to analyze your market. If condos similar to your own are selling within 45-60 days near asking price, consider listing now. If it's taking a while and a couple price drops to get a contract going, give it some time.

Dung Nguyen · Answer

@Ryan P. Kotschedoff Thanks

Ryan P. Kotschedoff · Answer

If you think you could lock a lower interest rate before they raise them in December on the 3 family house hack, then I would definitely sell now. But if you think you can’t get the deal together before December’s increase in interest rates I would recommend you wait until January when we are more confident on the markets direction. Moving into a 3 family while house hacking is a fantastic idea, but it’s all about trying to predict the market and I think waiting until January is the best bet due to the markets unstable nature right now. Just my personal opinion, but there is never really a right or wrong answer on when to invest because the market is impossible to predict of course.

Dung Nguyen · Answer

@Ryan P. Kotschedoff thanks for the advice ! if you are in my situation would you sell now or wait until spring/summer? my plan is to sell and take the capital gains and re invest into a 3 family house hack.

Brad M. · Answer

Anyone's advice could lead you wrong, I believe the cap gains can be prorated for certain reasons. Glad your looking for more opinions.