There is a lot to consider when you decide to sell your home. While you certainly have your own personal reasons for a move, a big consideration people have is if mortgage rates and their impact on today’s housing market make it a good time to sell or not. Here are some things to consider if you fall into this camp.
Should You Wait?
If you are thinking of waiting to sell once mortgage rates dip down more, it is likely that many others are thinking that too. This means that there could be more competition if you wait as other sellers will also list at that time as well. Even a smaller drop in rates will most likely lure more buyers and sellers into the market.
Are Buyers Active?
The short answer is yes. Despite rates being higher these days there are many buyers out there still searching for their next home. According to ShowingTime Showing Index, if we look at the month of March for the past 7 years (other than 2021 and 2022 as they were out of the norm due to the pandemic) then activity is normal. It is not only good activity like last year but it is also up from years such as 2018 and 2019 when rates were much lower.
Future Home Affordability
If you are worried about whether or not your next home will be too expensive with today’s rates and prices, you probably have more equity in your current home than you realize. Homeowners have accrued record amounts of equity over the past few years. And that equity can make all of the difference when you buy your next home. You may even have enough to be an all-cash buyer and avoid taking out a mortgage altogether. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says: “ . . . those who have earned housing equity through home price appreciation are the current winners in today’s housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”
If you want to talk more about any of these questions or need more information, contact me today!
