As you plan out your goals for the year, moving up to your dream home may top the list. But, how do you know when to make your move? You want to time it just right so you can get the most out of the sale of your current house. You also want to know youre making a good investment when you buy your new home. What you may not realize is, that opportunity to get the best of both worlds is already here.
You dont want to wait until spring to spring into action. The current market conditions make this winter an ideal time to move. Heres why.
1. The Number of Homes on the Market Is Still Low
Todays limited supply of houses for sale is putting sellers in the drivers seat. There are far more buyers in the market than there are homes available, and that means buyers are eagerly waiting for your house. Listing your house now makes it the center of attention. As a seller, that means when its priced correctly, you can expect it to sell quickly and get multiple strong offers this season. Just remember, experts project more inventory will come to market as we move through the winter months. The realtor.com 2022 forecast says this:
After years of declining, the inventory of homes for sale is finally expected to rebound from all-time lows.
Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.
2. Your Equity Is Growing in Record Amounts
Current homeowners are sitting on record amounts of equity thanks to todays home price appreciation. According to the latest report from CoreLogic, the average homeowner gained $56,700 in equity over the past 12 months.
That much equity can open doors for you to make a move. If youve been holding off on selling because youre worried about how rising prices will impact your own home search, rest assured your equity can help fuel your next move. It may be just what you need to cover a large portion if not all of the down payment on your next purchase.
3. While Rising, Mortgage Rates Are Still Historically Low
In January of last year, mortgage rates hit the lowest point ever recorded. Today, rates are starting to rise, but that doesnt mean youve missed out on locking in a low rate. Current mortgage rates are still far below what theyve been in recent decades:
- In the 2000s, the average mortgage rate was 6.27%
- In the 1990s, the average rate was 8.12%
Even with mortgage rates rising above 3%, theyre 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, itll cost you more to purchase your next home.
4. Home Prices Are Going To Keep Rising with Time
According to industry leaders, home prices will also continue appreciating this year. While experts are forecasting moremoderatehome price growth than last year, its important to note prices will still be moving in an upward direction throughout 2022.
What does that mean for you? If youre selling so you can move into a bigger home or downsize to the home of your dreams, you want to consider moving now before rates and prices rise further. If youre ready, you have an opportunity to get ahead of the curve by purchasing your next home before rates and prices climb higher.
Bottom Line
If youre considering selling to move up or downsize, this may be your moment, especially with todays low mortgage rates and limited inventory. Lets connect today to get set up for homebuying success this year.