It's been a dilemma faced by homeowners who are looking to sell their homes from the dawn of time. Is there a perfect time to sell a home? Should you put your home on the market right now, or should you wait?

As the year 2006 begins, there are indications that it may be worthwhile for you to put your home on the market now. The first indicator is rising interest rates. Interest rates have been rising steadily for several months, and it appears that they are going to continue to rise.

Higher interest rates carry with them several consequences. Fewer buyers will be able to qualify for homes as interest rates increase, which in turn increase payments. All real estate markets are somewhat different, of course, but with higher interest costs, there is often a dip in real estate values to compensate, which means that you might get a lower price for your house as 2006 wears on than you would if you put it on the market right away.

With adjustable mortgages becoming more and more standard, homeowners will find their payments rising, as well. That means more people will find themselves in a financial bind, prompting them to sell their homes. As with all supply and demand situations, a glut of house on the market will mean more competition, and lower prices.

If you happen to be one of those financially-strapped sellers, you may find yourself in an increasingly difficult situation because of the combination of fewer buyers and more available houses on the market. That could translate to a longer time on the market and/or a lower sales price for your home in order to sell it quickly.

As a seller contemplating when to sell your home, it will be prudent to keep an eye on interest rates as 2006 progresses. Rising interest rates could very well be the key to how the real estate market is going to go, and to when you'll get the quickest sale and best price for your home.

Copyright Jeanette J. Fisher