Questions You May Have About Selling Your House

Questions You May Have About Selling Your House

There's no doubt that mortgage rates are greatly influencing today's housing market. This may lead you to question if it’s still a good idea to sell your house and move.

Here are three key questions you might be considering, along with data-driven answers.

1. Should I Wait To Sell?

If you’re considering waiting to sell your house until after mortgage rates drop, here’s what you should know: many others are thinking the same thing.

While mortgage rates are expected to decrease later this year, delaying your sale could mean facing much more competition as other buyers and sellers re-enter the market.As Bright MLS says:

“Even a modest drop in rates will bring both more buyers and more sellers into the market.”

That means if you decide to wait, you might encounter rapidly increasing prices and more multiple-offer situations when purchasing your next home.

2. Are Buyers Still Out There?

But that doesn’t mean everyone is holding back. Despite some hesitations, there are still many buyers actively searching for homes today. Here’s the data to support it.

The ShowingTime Showing Index tracks the frequency of home tours by buyers. The graph below shows buyer activity for March (the latest data available) over the past seven years:

You can see that demand has decreased since the 'unicorn' years (shown in pink) due to factors like higher mortgage rates, rising prices, and limited inventory. However, to truly understand today's demand, it's important to compare our current situation with the last normal years in the market (2018-2019) – not the exceptional 'unicorn' years.

By focusing on the blue bars, you can see how 2024 measures up, providing a fresh perspective.

Nationally, demand remains high compared to the last normal years in the housing market (2018-2019). This indicates there is still a strong market for selling your house.

3. Can I Afford To Buy My Next Home?

And if you’re concerned about affording your next move with today's rates and prices, consider this: you likely have more equity in your current home than you realize.

Homeowners have accumulated record amounts of equity over the past few years. This equity can significantly impact your ability to buy your next home. You might even have enough to become an all-cash buyer, allowing you to avoid taking out a mortgage altogether. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“ . . . those who have earned housing equity through home price appreciation are the current winners in today's housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”

Conclusion:

If these three questions have been on your mind and have held you back from selling, hopefully, this information helps. A recent survey from Realtor.com shows that over 85% of potential sellers have been considering selling for more than a year. This means many sellers like you are on the fence.

However, the same survey also spoke to sellers who recently decided to take the plunge and list their homes. Of those recent sellers, 79% wish they’d sold sooner.

If you want to discuss any of these questions further or need more information, contact JUDY at (559) 272-8557.

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