Questions You May Have About Selling Your House

There’s no denying that mortgage rates are significantly impacting today’s housing market. This might leave you wondering if it still makes sense to sell your house now. Here are three common questions you might have and the data to help answer them.

1. Should I Wait to Sell?

If you’re considering waiting to sell until mortgage rates drop, it’s important to know that many others are thinking the same thing. While mortgage rates are forecasted to decrease later this year, waiting could mean facing more competition. Bright MLS explains:

“Even a modest drop in rates will bring both more buyers and more sellers into the market.”

If you wait, you might encounter rising prices and more multiple-offer situations when buying your next home.

2. Are Buyers Still Out There?

Despite some holding off, there are still plenty of active buyers. The ShowingTime Showing Index, which measures how frequently buyers tour homes, provides insight into buyer activity. Here’s the latest data for March over the past seven years:

While demand has dipped from the 'unicorn' years (shown in pink) due to higher mortgage rates, rising prices, and limited inventory, it’s crucial to compare current demand with the last normal years in the market (2018-2019). Focusing on the blue bars gives a clearer perspective.

Nationally, demand remains high compared to 2018-2019, indicating there’s still a strong market for your house.

3. Can I Afford to Buy My Next Home?

Concerns about affording your next move with today’s rates and prices are understandable. However, you likely have more equity in your current home than you realize. Homeowners have gained significant equity in recent years, which can greatly benefit your next purchase. You might even have enough equity to buy your next home with cash, avoiding the need for a mortgage. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), notes:

“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.”

If these questions have been on your mind and holding you back from selling, the information above should provide clarity. A recent Realtor.com survey found that over 85% of potential sellers have been considering selling for more than a year. However, 79% of recent sellers wish they’d sold sooner.

If you want to discuss these questions further or need more information, contact a real estate agent.