Moving up to your ideal home may be at the top of your list of New Year’s resolutions. But how do you know when it’s time to act? You want to time the sale of your current home perfectly so that you get the maximum money possible. You also want to know that when you buy a new home, you’re making a wise investment. What you may not realize is that the chance to have the best of both worlds is already available to you.
You don’t want to wait until spring to spring into action. The current market conditions make this winter an ideal time to move. Here’s why.
1. Low Homes on Market
Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are many more buyers than properties available in the market, which means that purchasers are eagerly awaiting your home. When you list your home, it becomes the center of attention. As a seller, this means you can anticipate your home to sell quickly and receive numerous strong offers this season if you price it right. Remember that as the winter months progress, more inventory is expected to enter the market. The realtor.com 2022 forecast says this:
“After years of declining, the inventory of homes for sale is finally expected to rebound from all-time lows.”
Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.
2. Record Equity
Current homeowners are sitting on record amounts of equity thanks to today’s home price appreciation. According to the latest report from CoreLogic, the average homeowner gained $56,700 in equity over the past 12 months.
If you’re concerned about how rising prices will affect your house hunt, know that your equity can assist you make your next move. It could be exactly what you need to cover a big percentage – if not all – of your next purchase’s down payment.
3. While Rising, Mortgage Rates Are Still Historically Low
In January of last year, mortgage rates hit the lowest point ever recorded. Today, rates are starting to rise, but that doesn’t mean you’ve missed out on locking in a low rate. Current mortgage rates are still far below what they’ve been in recent decades:
- In the 2000s, the average mortgage rate was 6.27%
- In the 1990s, the average rate was 8.12%
Even if mortgage rates have risen beyond 3%, they are still worthwhile to take advantage of. You simply want to do it as quickly as possible. Rates are expected to rise throughout the year, according to experts, and when they do, it will cost you more to buy your next house.
4. Home Prices still rising
Home prices are expected to continue to rise this year, according to industry experts. While experts predict more moderate home price growth than the previous year, it’s vital to remember that prices will continue to rise through 2022.
So, what does this imply for you? If you’re selling to upgrade or downsize to the home of your dreams, you should act quickly before interest rates and prices rise more. If you’re ready, you may get ahead of the game by acquiring your next house before interest rates and prices rise.
With today’s cheap mortgage rates and limited inventory, now may be the best time to sell if you’re looking to upsize or downsize. Contact me today and let’s get you ready to buy a home this year.