Hey Sellers! Don’t Wait Until Spring to Make Your Move
Is moving up to your dream home one of your goals this year? Are you wondering when to make the move? You want to time it exactly right so you can get the most out of the sale of your current house. You also want to know you’re making a sound investment when you buy your new home. Well, good news. The opportunity to get the best of both worlds is already here. The current market conditions make this winter an ideal time to move. Here’s why:
The number of homes on the market is still low.
Today’s limited supply of houses for sale is putting sellers in the driver’s seat. In most price ranges, there are more buyers in the market than there are homes available; that means prospective buyers are eagerly waiting for your house. That means, if it’s priced correctly, you can expect your house to sell quickly and get strong offers now. As we move toward spring, more properties will come onto the market. Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.
Your equity is growing in record amounts.
Thanks to today's home price appreciation, current homeowners are sitting on record amounts of equity. According to the Federal Housing Finance Agency, North Dakota saw
2.1% appreciation over the last quarter of 2021,
8.7% appreciation over last year, and
17.5% appreciation over the last five years.
Based on those numbers, a homeowner who paid $225,000 for a home in our area five years ago has gained just over $39,000 in equity. If you’ve been holding off on selling because you’re worried about how rising prices will impact your own home search, the equity you've gained in your current home may be just what you need to cover a generous portion of a down-payment your next home.
Mortgage rates are rising yet still historically low.
Mortgage rates are starting to rise. That doesn't mean you've missed locking in at a low rate. In January of last year, mortgage rates hit the lowest ever recorded. Current rates are still far below what they've been in recent decades. In the 1990s, the average interest rate was 8.12%; in the 2000s, the average rate was 6.27%. Even with mortgage rates rising above 3%, they’re still worth taking advantage of. You just want to do so sooner rather than later. Experts are projecting rates will continue to rise throughout this year, and when they do, it’ll cost you more to purchase your next home.
Home prices are going to keep rising with time
While experts are forecasting more moderate home price growth than last year, it's important to note prices will still be moving in an upward direction through 2022. What does that mean for you? If you’re selling so you can move into a bigger home or want to downsize, consider moving now before prices rise further.
If you’re considering selling to move up or downsize, this may be your moment, especially with today’s low mortgage rates and limited inventory. Reach out to me today to get set up for homebuying success this year.