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Mortgage rates are significantly impacting today’s housing market, which might leave you questioning whether now is the right time to sell your house and move. Here are three key questions you might have, along with the data to help you make an informed decision.
If you’re thinking about waiting to sell until mortgage rates drop, you’re not alone—many others are considering the same. While mortgage rates are expected to decrease later this year, waiting could mean facing increased competition as more buyers and sellers enter the market. According to Bright MLS:
“Even a modest drop in rates will bring both more buyers and more sellers into the market.”
This means if you wait, you might have to deal with rising prices and more multiple-offer scenarios when purchasing your next home.
Despite some people postponing their moves, there are still plenty of active buyers in the market. The ShowingTime Showing Index, which measures how frequently buyers are touring homes, provides insight into this activity.
The graph below shows buyer activity for March over the past seven years:
While demand has dipped compared to the ‘unicorn’ years (highlighted in pink) due to factors like higher mortgage rates, rising prices, and limited inventory, it remains strong compared to the last normal years (2018-2019). This indicates there is still a robust market for your home.
If you’re concerned about affording your next home given current rates and prices, consider that you likely have more equity in your current home than you realize. Homeowners have gained significant equity over the past few years, which can make a big difference in your next purchase. You might even have enough equity to buy your next home with cash, avoiding the need for a mortgage. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:
“ . . . 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 questions have been holding you back from selling, hopefully, this information provides clarity. A recent survey from Realtor.com shows that over 85% of potential sellers have been considering selling for more than a year. Many are on the fence, but of those who recently listed their homes, 79% wish they had done so sooner.
If you want to discuss any of these points further or need more information, let’s connect.
