True, it’s a hot market and there’s not much for sale, but does that mean you should hop on board and list your home for sale? Not necessarily. It’s true that you, the seller, are in control right now, and it’s true that you’ll probably have an offer on the home within days if not hours of listing it for sale. However, it’s also true that we’re heading into a period of price increases based on the activity we’re seeing. How long will this price increase last? Nobody knows. We do know that the annual ebb and flow of the market suggests that the price increases will wane, flattening out towards the summer months, then falling off until this time next year when it all happens again.
What you really need to do is examine your financial situation. If you’re upside down by 60-70% or so, then what are you waiting for. Short sell your home. There’s a tax benefit to doing so as long as you close escrow by December 31st of this year, and if that’s the direction you’re headed anyway, why wait?
If you think you’ll recover enough value that it doesn’t make sense to short sell your home, then stick around a while. Values will not come back to what they were in 2004/5 any time soon, but if you find yourself in a situation where you have 10-20% equity, then you’re on track to an eventual refinance to get you out of a bad loan product, assuming that’s what you’ve got.
My philosophy regarding real estate is to buy and hold, forever. As long as the purchase of your home was a wise financial decision (most were not) then you should be in a great position to eventually pay off your home and turn it into an income property, and you should not sell it.
The choice is up to you. One thing’s for certain. You can definitely sell in today’s market.