If you’ve been wanting to sell your house and move up to a bigger or nicer home, you’re not alone. A recent Inman survey reveals the top motivator for today’s homebuyers is the desire for more space or an upgraded home (see graph below):
But there’s also a good chance you, like many others, have been holding off on that goal because of recent market challenges. It makes sense – when planning an upgrade that could increase your monthly housing costs, affordability significantly impacts when you make your move. But good news: now’s a great time to make that move happen. Here’s why.
You Have a Lot of Equity To Leverage
One critical benefit of the market is the amount of equity you’ve likely built up in your current house over the years. Even with recent shifts in the housing market, national home prices have steadily grown, adding to the equity homeowners have today. Selma Hepp, Chief Economist at CoreLogic, explains it well:
“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.”
What does that mean for you? If you’ve been in your home for a few years, you’re probably sitting on significant equity. You can put that toward the down payment on your next home, helping keep the amount you borrow within a comfortable range.
This can make upgrading more achievable than you might think. If you’re curious about how much equity you’ve built up over the years, ask your real estate agent for a professional equity assessment.
Mortgage Rates Have Fallen, Boosting Your Purchasing Power
Another big reason it’s a great time to move is that mortgage rates are trending down. Lower rates can help make your future monthly payments more manageable and increase your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), points out:
“When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.”
That gives you more flexibility when shopping for homes and may allow you to afford a house at a price point that was previously out of reach. A trusted lender can work with you to determine the best budget plan.
Bottom Line
If you’re ready to sell your current home and find the more significant, more excellent home you’ve been dreaming of, don’t wait. Your equity and lower mortgage rates put you in a great position to make that move today.
To make the best decisions and maximize your current market advantages, connect; you can have an expert guide through every step of the home-buying process.
