Evaluating Your Next Move: Let's Address Some Key Seller Concerns
Deciding whether to sell your home in today’s market is a significant decision, often accompanied by questions about timing and feasibility. Two primary concerns many homeowners face are whether moving is a prudent choice in the current environment and the ability to find a desirable home. Here’s an objective look at these considerations.
Is Now a Strategic Time to Move?
For current homeowners, the prospect of selling may seem daunting due to higher mortgage rates. However, leveraging your home equity could make your next move more achievable than anticipated.
Home equity represents the difference between your home’s market value and the outstanding balance on your mortgage. Over the past few years, substantial home price appreciation has significantly increased equity for many homeowners.
Dr. Selma Hepp, Chief Economist at CoreLogic, underscores the scale of this growth:
“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”
This increased equity provides sellers with financial flexibility. It can enable a larger down payment on a new property, reducing the financed amount at today’s rates. In some cases, homeowners may even opt to purchase their next home outright, bypassing the need for a mortgage entirely.
Conclusion: Equity can be a powerful asset, potentially bridging the gap between current market conditions and your next real estate goals.
Will Suitable Housing Options Be Available?
Concerns about inventory shortages remain top of mind for many sellers, given the historically low supply of homes in recent years. However, market conditions have shifted, and inventory levels have increased.
Data from Realtor.com indicates that housing inventory has grown nearly 30% year-over-year, providing prospective buyers with a broader range of options than in previous years. This improvement in supply enhances the likelihood of finding a property that meets your preferences and lifestyle.
Key Takeaways
Current market dynamics, coupled with the equity many homeowners have accrued, present a unique opportunity to sell and transition to a new home. While mortgage rates are a factor, strategic planning and the right resources can position you for a successful move.
If you are considering selling or would like to explore the opportunities available to you, I would be happy to provide professional guidance tailored to your specific circumstances.
