4 Reasons This Spring Presents Sellers with a Golden Opportunity
If you're planning to sell your home this year, you must act quickly. After all, you'll want to strike a balance between getting the most out of your present home's sale and making the finest investment possible when purchasing your future one.
If this describes you, you should know that you might be able to enjoy the best of both worlds today. Here are four reasons why this spring may be a fantastic chance for you.
1. Rising Mortgage Rates
While mortgage rates have been rising this year, they are still lower than they have been in recent decades. The average mortgage rate in the 2000s was 6.27 percent. The average rate in the 1990s was 8.12 percent.
According to Freddie Mac, the current average 30-year fixed mortgage rate is 3.85 percent. While recent global uncertainties prompted rates to fall modestly in the short term, analysts expect rates to climb in the coming months. Fannie Mae's Senior Vice President and Chief Economist, Doug Duncan, says:
“For homebuyers, we believe that borrowing costs will likely rise with the increase in mortgage rates….”
When that happens, it’ll cost you more to purchase your next home. That’s why it’s important to act now if you’re ready to sell. Work with a trusted advisor to kickstart the process so you can take key steps to making your next purchase before rates climb further.
2. Home Prices Are Rising Too
Because of a mismatch between supply and demand, home prices have soared in recent years. And the rise in property values will continue as long as that disparity exists.
So, what does this imply for you? If you're selling to move into the home of your dreams or downsize into something that better meets your current requirements, you may get ahead of the curve by using your increasing equity to buy your next home before prices rise.
And, once you've made your purchase, you'll have peace of mind knowing that your new investment is rising in value due to continued house price increase.
3. The Inventory of Homes on the Market Is Still Low
Because of the scarcity of residences for sale today, sellers are in the driver's seat. In today's market, there are significantly more buyers than properties available. This indicates that buyers are anxiously anticipating your home in the market.
When you list your home, it becomes the center of attention. And, if you work with a real estate agent to price your home right, you may anticipate it to sell fast this season, with numerous strong offers.
4. Your Equity Is Growing in Record Amounts
Homeowners are sitting on historic amounts of equity owing to recent house price gains, according to CoreLogic's latestHomeowner Equity Insight study. The average homeowner has gained $55,300 in equity over the last year, according to the survey.
You may be able to make a move with that much equity. If you've been putting off selling because you're scared about how rising prices may affect your future home hunt, don't worry. Your equity can help you get where you want to go. It might be just what you need to cover a big chunk – if not all – of your future home's down payment.
This spring might be your golden opportunity to win when it comes to selling and buying. Let's connect so you can gain the knowledge you need to capitalize on today's amazing seller's market.