Don’t Let These Two Concerns Hold You Back from Selling Your House
Is It Even a Good Idea to Move Right Now?
Homeowners often hesitate to sell because they’re unsure if now is the right time—especially with fears of higher mortgage rates on their next purchase. But here’s the good news: leveraging the equity you’ve built through recent home appreciation can make the transition much easier than you might think.
Equity, which is the difference between your home’s market value and your remaining mortgage balance, has likely grown substantially over the past few years. According to Dr. Selma Hepp from CoreLogic, the average homeowner now has about $315,000 in equity—an impressive $129,000 increase since the start of the pandemic. This significant gain gives you the power to make a larger down payment on your next home, reducing monthly mortgage costs. In some cases, it might even allow for an all-cash purchase, completely avoiding the stress of higher mortgage rates.
Will I Be Able to Find a Home I Like?
Another common concern for homeowners is whether they’ll be able to find a suitable new home in today’s market. With historically low inventory levels in recent years, it’s easy to see why sellers might hesitate. However, the market is shifting in your favor.
Data from Realtor.com shows that available homes have increased by nearly 30% year-over-year, giving buyers far more options than before. While inventory hasn’t fully returned to pre-pandemic levels, the improvement means there’s a better chance of finding your dream home while your current property remains in high demand.
Working with a local real estate expert can provide invaluable insights into your area’s specific inventory trends. This personalized guidance ensures you’re well-prepared to find a home that fits your needs, making the process less overwhelming and more rewarding.
Your Questions Answered
Q1: How does increased equity help with selling and buying a new home?
A1: Increased equity allows you to make larger down payments, reducing your mortgage costs or potentially enabling you to buy a home outright with cash. This added financial flexibility can make your next move much smoother.
Q2: Why are more homes available now than before?
A2: The rise in inventory is part of a market correction post-pandemic. More sellers are listing their homes, which has led to a significant year-over-year increase in options for buyers.
Q3: Should local market trends influence my decision to sell?
A3: Absolutely! Local trends vary widely and can impact the value of your current home and the availability of your next one. Consulting with a local real estate agent ensures you have accurate, market-specific insights to guide your decision.
Final Thoughts
Selling your home is a big decision, but with the right strategy, it can also be an incredibly rewarding one. By understanding how to leverage your home equity and navigate today’s improving inventory levels, you can move forward with confidence.
Ready to explore your options? Contact me today for a personalized consultation. Let’s make your next move the right one!