Hey homeowners, are you thinking about selling? If you are, there may be two key things holding you back. First up, is the feeling that you are locked in by today’s higher mortgage rates. Second, the worry that you won’t be able to find something to buy while supply is so low. As your friendly real estate agent, I’m here to help you tackle these issues and give you some helpful advice.
Challenge #1: The Reluctance to Take on a Higher Mortgage Rate
According to a recent report, the average interest rate for current homeowners with mortgages is less than 4%. Great news, right? Kind of. In actuality, the typical 30-year fixed mortgage rate offered to buyers is closer to 7%. Even with this small increase, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. There is a name for this all, the mortgage rate lock-in effect. Cue the dramatic musical riff.
The Advice: Waiting May Not Pay Off
Not to worry, there’s always flipside, friends! First off, mortgage rates are notoriously hard to predict. And, right now home prices are back on the rise. If you make your move now, you’ll beat rising home prices when you buy your next home. If mortgage rates do fall, hope is not lost, you can always refinance later.
Challenge #2: The Fear of Not Finding Something to Buy
So, we’ve gotten over the first hurdle! Hurrah! You are more confident about the mortgage rate challenge. But what about when you sell?
With many homeowners reluctant to take on a higher rate, fewer homes are going to come onto the market. While post-pandemic inventory has remained low, the mortgage rate lock-in effect will likely keep it that way. This is great news for helping your house stand out to buyers, though it may also make you feel hesitant to sell because you don’t want to struggle to find something to purchase. Understandable, especially if you are planning to purchase a pre-owned home.
The Advice: Broaden Your Search
The best way to power through this challenge, is to consider all your options. Sounds simple, yes? First, look at all the housing types that are available including condos, townhouses, and even newly built homes. Plus, if you’re able to work fully remote or hybrid (congrats), you may be able to consider areas you hadn’t previously searched. Fantastic news! If you can look further from your place of work, you may have more affordable options.
Okay homeowners! Instead of focusing on the challenges, focus on what you can control. If you need help wading through your options, let’s connect and find the perfect home for you.