If you've been thinking about selling your home and upgrading to a bigger or more luxurious one, you're not alone. According to a recent Inman survey, the primary motivation for many homebuyers today is the desire for more space or an upgraded property. However, you might have delayed this move due to market uncertainties. While that’s understandable, there’s good news: right now might be the perfect time to make the leap. Here's why.
Leverage Your Home Equity
One of the biggest advantages you have in today’s market is the equity you’ve likely accumulated in your current home. Despite recent market fluctuations, home prices have continued to grow over time, boosting the equity homeowners are sitting on. As Selma Hepp, Chief Economist at CoreLogic, explains:
“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.”
This means that if you've been in your home for a while, you’re likely sitting on a significant amount of equity. You can use that to make a larger down payment on your next home, keeping your borrowing amount more manageable and helping you move up to your dream home more easily. Not sure how much equity you've built? Reach out to your real estate agent for a professional equity assessment.
Falling Mortgage Rates Boost Your Buying Power
Another reason to consider upgrading now is the recent dip in mortgage rates. Lower rates mean more manageable monthly payments, and they also increase your purchasing power, allowing you to afford a higher-priced home than you might have expected. As Nadia Evangelou, Senior Economist 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.”
With rates trending down, now is a great time to explore your options, as you may be able to comfortably afford a home that was previously out of reach. A trusted lender can help you assess how much home you can afford and find a plan that fits your budget.
If you're ready to sell your current home and move into something bigger or more luxurious, now’s a great time to act. Your existing home equity, combined with falling mortgage rates, gives you a strong position to make that dream home a reality. To navigate the process smoothly and make the best decisions, partner with a trusted real estate professional who can guide you every step of the way.
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