Selling Your Home in a Hot Market to Buy a New House

June 23, 2022
Last updated:
June 23, 2022
In This Article

There are currently more people looking to buy homes than there are homes on the market. Those seeking to sell are wondering if they will be able to find a new home to buy in time.

The fact that inventory in high demand cities is now measured in mere days or weeks instead of the usual several-month buffer is contributing to anxiety over home selling and buying. This is especially true for those who want to sell their home and buy another, but fear they may end up paying for lodging for weeks or months due to the inability to easily close on a new residence.

It’s fortunate that more home listings are coming onto the market, according to the latest housing data available. This can make it easier for homeowners looking to sell to do so with confidence they can soon move into a new home.

More listing are coming into the Market

What We’re Seeing in the Housing Inventory in 2022

Although it is true that select cities seem to have little or no homes for sale, overall inventory is starting to climb. The year started out with a mere 326,000 homes for sale on the market in January; by May, that number had climbed to 541,000, a steady growth of roughly 40,000 to 50,000 homes per month.

Mortgage rates that are climbing extremely swiftly are also contributing to an increase in inventory – or if not a major increase, at least more stability in the sense that homes stay on the market longer. For a while, it seemed like houses were receiving multiple offers within moments of hitting the market, and disappearing in days if not hours.

This demand for housing also kept prices high; many homes went for well over asking price, and bidding wars were frequent. This bode well for those seeking to sell as well as those who bought early in the spike; home prices have appreciated beyond anyone’s wildest imaginings since the start of the pandemic.

Construction was another factor affecting home inventory; without much construction due to supply chain and labor issues, the housing market shrank to existing homes. This made it even harder for those selling to trade up into a brand new home, causing increased competition for upper scale existing properties.

The luxury home market has seen a significant increase in interest, with prices shooting up as people decided they wanted more room for work, schooling their children, cooking, and privacy. Even though people are now out in public again, the outbreak and subsequent lockdowns gave people new appreciation for the place they were spending most of their time.

Today’s Mortgage Rates

Selling Your Home in a Hot Market to Buy a New House

Selling your home, even if it isn’t absolutely perfect, isn’t going to be the problem. The sticking point comes with finding a home you want to buy, and being fast enough to make a move.

You don’t want to sell your home preemptively, and get stuck renting or living out of expensive hotels until you can close on a new one. However, you also don’t want to find the perfect new house, make an offer, then have to sit around paying two mortgages while arranging to sell your existing home.

More even than that, if you depend on the sale of your existing home to afford the new one, the usual action is to make a contingent offer – in other words, buying the new home is contingent on the sale of your old one.

In a seller’s market, that just doesn’t fly. Sellers have plenty of buyers willing to make contingency free offers, and don’t want to take their house off the market if there is a chance you won’t come through.

Ways to Get Around the Sellers Market

Sammamish Mortgage offers several loan programs designed to help you when you’re navigating selling your home in a hot market to buy a new house.

Bridge Loan Program

The Sammamish Mortgage Bridge Loan Program lets you get a short term lien on the home you’re buying, giving you the cash you need to put down and get your offer accepted without contingencies. You can confidently buy your new house, and once it closes we’ll start the process of refinancing into a conventional long-term mortgage, completing the process when your original home sells. This helps you easily navigate selling a home while buying a new one.

Cash Buyer Program

The Sammamish Mortgage Cash Buyer Program lets you make a cash offer to a home seller – no contingencies related to appraisals, home financing or selling your current home. We can even use equity in your current homes to help cover the down payment! Once the deal closes, we refinance your loan as a conventional FHA, VA, or jumbo mortgage.

Now is a great time to take advantage of low inventory to list and sell your existing home at above asking price, while still being able to seamlessly purchase a new home and get moved into it. As noted in the infographic, inventory is starting to increase again, so the time to make a move to gain the most profit is now.

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Why Choose Sammamish Mortgage?

At Sammamish Mortgage, we can help you get fully preapproved for a mortgage and help you navigate the tricky process of trying to sell your home in a hot market without winding up with nowhere to live.

Sammamish Mortgage has been in business since 1992, and has assisted many homebuyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help you get preapproved. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon, and Washington.

Contact a loan officer if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.

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