Should I sell now? Or wait until the market improves?

By Greg Perry
Kirkland Realtor

Almost every day someone asks me the question, "Is this a good time to sell?  Or should I wait until next year when the market improves?

Great question, and I wish I knew the answer. We can't see into the future, (I haven't found any crystal balls that really work) but we can see the market through the lens of the history.

Take a look at this chart (click to expand).
 

The May 2009 median price for King County came in at $380,000.  This is roughly the same as the median price back in July 2005.  From that point in July 2005, the market steadily rose with the some of the highest appreciation rates we have ever seen, to the market peak in July 2007. 

While the last two months median prices have evened somewhat, it's still too early to see if median prices are stabilizing, or will continue to trend downward.

Here's the important point I want to make.  If the market starts appreciating today, how long will it take until it comes back to peak pricing? (Remember the run up from July 2005 until the peak in July 2007 had much higher than normal appreciation rates).

If the King County median prices start to rise today, at a modest 5% rate of appreciation, it will take over 5 years to equal the July 2007 peak!

So, Mr./Mrs Seller, how long should you wait for the market to come back before selling?

Median prices are for King County.  Individual price ranges and locations within King County may be under performing or outperforming the general county conditions.  Statistics compiled from but not verified or published by the NWMLS.

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