3 Key Questions Answered About Our Current Real Estate Landscape
Mortgage rates are undoubtedly influencing the current real estate landscape, prompting many to reassess their plans for selling their homes and moving. If you're in that boat, here are three key questions you might be pondering, along with some insights to help you navigate your decision:
Should I Hold Off on Selling? If you're contemplating delaying your home sale until mortgage rates drop, you're not alone. Many others are considering the same strategy. However, it's important to note that even a modest decrease in rates is likely to trigger increased activity from both buyers and sellers, leading to heightened competition in the market. Waiting could mean facing accelerated price growth and more competitive bidding situations when you're ready to purchase your next home.
Are Buyers Still in the Market? Despite some hesitation from certain segments of the market, there's still significant buyer activity underway. The ShowingTime Showing Index, which measures home tour frequency, provides valuable insights into buyer demand. While demand has moderated compared to the exceptional levels seen in recent years, it remains robust when compared to pre-pandemic levels. This suggests that there's still a healthy appetite among buyers for homes, providing sellers with viable opportunities.
Can I Afford to Make a Move? Concerned about affordability amidst today's market conditions? Consider the equity you've likely built up in your current home. Thanks to substantial home price appreciation in recent years, homeowners have seen significant gains in equity. This equity can serve as a valuable asset when purchasing your next home, potentially enabling you to become a cash buyer and circumvent the need for a mortgage altogether. Many recent homebuyers have capitalized on their accrued equity, with a notable percentage opting to finance their purchases independently of mortgage loans.
If these questions have been weighing on your mind, it's essential to arm yourself with the right information to make informed decisions. While many prospective sellers have been contemplating their next move for some time, recent data indicates that those who took the plunge and listed their homes have few regrets. If you're seeking further clarification or assistance, don't hesitate to reach out. Let's connect and explore your options together.
