There’s no denying that mortgage rates are significantly impacting today’s housing market. This may leave you wondering whether it still makes sense to sell your house and make a move.
Here are three of the top questions you may be asking about selling your house, along with data to help answer them.
Should I Wait To Sell My House?
If you’re considering waiting to sell your house until mortgage rates come down, keep this in mind: many others are thinking the same thing.
While mortgage rates are forecasted to decline later this year, waiting could result in increased competition as more buyers and sellers re-enter the market. As Bright MLS states:
“Even a modest drop in rates will bring both more buyers and more sellers into the market.”
This means that if you wait, you might face rising prices and more multiple-offer scenarios when you buy your next home.
Are Buyers Still Out There?
The current market does have active buyers, despite some people holding off. Data shows that while buyer demand has decreased compared to the last few years, it remains strong when compared to pre-pandemic levels.
Factors like higher mortgage rates, rising prices, and limited inventory have contributed to a slight decline in buyer activity. However, when viewed in the context of normal market years, buyer demand today is still robust, proving there’s a steady market for selling your house.
Can I Afford To Buy My Next Home After Selling My House?
If you’re concerned about affording your next move with current rates and prices, consider this: you likely have more equity in your current home than you realize.
Homeowners have accumulated record amounts of equity over the past few years. This equity can significantly impact your next home purchase, possibly enabling you 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.”
Bottom Line
If these three questions about selling your house have been on your mind and holding you back, hopefully, this information provides clarity. A recent survey from Realtor.com found that over 85% of potential sellers have been considering selling for more than a year. This means there are many sellers like you who are on the fence.
The same survey also found that 79% of recent sellers wish they’d sold sooner.
If you want to discuss any of these questions or need more information, contact me, Teresa Hill, for all your real estate needs.
Sources: Bright MLS, National Association of Realtors (NAR), ShowingTime, Realtor.com, and Keeping Current Matters.
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