With mortgage rates constantly in the news, it’s natural to wonder if now is the right time to sell your home. Here are answers to three common questions you may have about selling your home.
1. Should I Wait to Sell?
If you’re thinking about waiting to sell until mortgage rates drop, consider the potential market conditions you might face. Many homeowners are planning to do the same, which could lead to increased competition. Bright MLS notes:
“Even a modest drop in rates will bring both more buyers and more sellers into the market.”
Waiting could mean higher home prices and more bidding wars when you’re ready to buy your next property. Additionally, the housing market is influenced by various factors beyond mortgage rates, such as economic conditions, local market trends, and seasonal changes. By selling now, you might benefit from the current lower competition and still find motivated buyers looking for new homes.
2. Are Buyers Still Out There?
Despite some buyers holding off due to higher mortgage rates, many are still actively searching for homes. The ShowingTime Showing Index, which measures buyer activity, shows that while demand has dipped since the peak years (often referred to as the ‘unicorn’ years), it remains strong compared to the last normal market years (2018-2019).
For instance, comparing March’s buyer activity over the past seven years reveals that current demand, while lower than the peak years, is still robust. This ongoing demand suggests that there are still plenty of buyers interested in purchasing homes, providing a favorable market for sellers. Questions about selling your home often revolve around finding these active buyers.
3. Can I Afford to Buy My Next Home?
Affording your next home with today’s rates and prices might seem daunting, but the equity you’ve built in your current home can make a significant difference. Over the past few years, homeowners have gained record amounts of equity due to rising home prices. This equity can be leveraged to make your next purchase more affordable.
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:
“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.”
Using your home equity can potentially allow you to make a larger down payment, reducing the amount you need to finance and helping you secure a better mortgage rate. In some cases, homeowners can even make an all-cash purchase, eliminating the need for a mortgage and making their offers more attractive to sellers.
Additional Considerations
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Local Market Trends: Keep an eye on local real estate trends in your area. Factors such as job growth, infrastructure developments, and community amenities can impact property values and buyer interest. Questions about selling your home often include understanding these local trends.
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Seasonal Factors: Spring and summer are traditionally busy seasons for real estate, with more buyers actively searching for homes. Selling during these times might increase your chances of a quick and profitable sale.
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Professional Guidance: Consulting with a real estate agent can provide you with personalized insights and strategies based on current market conditions, helping you make informed decisions.
Bottom Line
If these questions about selling your home have been holding you back, hopefully, this information provides some clarity. According to a recent Realtor.com survey, over 85% of potential sellers have been considering selling for over a year. Many recent sellers (79%) wish they had sold sooner.
Don’t let uncertainty keep you from making a move! Contact our team to discuss your options and get expert advice tailored to your situation. The right guidance can help you navigate the market and make the best decision for your needs. At The Nickley Group, we do real estate differently.