Should I Move with Today’s Mortgage Rates?
Should I Move with Today’s Mortgage Rates?
When mortgage rates spiked up over the last few years, some would-be condo and home buyers put their plans to move on pause. Maybe you did too because you didn’t want to move and take on a higher mortgage rate for your next place. But is that still the right strategy for you?
In today’s market, data shows more homeowners are getting used to where rates are and thinking it may be time to move. As Mark Zandi, Chief Economist at Moody’s Analytics, explains:
“Listings are up a bit as life events and job changes are putting increasing pressure on locked-in homeowners to sell their homes. Homeowners may also be slowly coming to the realization that mortgage rates aren’t going back anywhere near the rate on their existing mortgage.”
A recent study from Bank of America sheds light on some of the things homeowners say would make them sell, even with rates where they are right now (see visual below):
What Would Motivate You To Move?
Now that you know why other people would move, take a minute to think about what would make a move worth it for you. Is it time to take a chance and go for your dream job, even though it’s not local? Are you looking for a neighborhood with more to offer and a close-knit sense of community? Maybe you need more space, you’re looking for your next great adventure, or you want a condo or house that opens up rental opportunities to pad your income.
And here’s something else to consider. Mortgage rates are still expected to go down over the course of the year. Once that happens, there will be a big rush of buyers jumping back into the market. While you could delay your plans until rates drop, you’ll only have more competition with those buyers if you do.
So, does that mean it’s worth moving now, even with rates where they are? The answer is: that it depends.
You’ll want to consider today’s mortgage rates, where they’re expected to go from here, and what would prompt you to want to make a change as you decide on your next steps. An expert can help with that.
Bottom Line
Other homeowners are getting used to rates and deciding to move. Let’s chat about what matters most and if it’s time for you to jump back into the market too. Contact us today at 734-761-3060 or info@condohotline.com and let’s discuss your options! Check out some different Ann Arbor condo communities here!
Maximize Your Condo Sale with the Power of Home Equity
What is Home Equity and Why Does It Matter?
Key Points
- Understanding your home equity can be a game-changer when deciding to sell your condo or home, especially in today’s market of high mortgage rates.
- Nearly 70% of homeowners have significant equity, making it an opportune time to consider selling.
- Our expert real estate team is here to guide you through the process, offering free home value assessments and answering any questions.
Home equity is more than just a financial term; it’s your ticket to new opportunities. In simple terms, it is the difference between your home’s current market value and the remaining balance on your mortgage. But why should you care? Well, with today’s real estate market, understanding it can be a game-changer when you decide to move.
The Equity Boom: A Silver Lining in Today’s Market
You’re not alone if you’re hesitant to sell your condo due to high mortgage rates. However, there’s good news. According to data from ATTOM and the Census, nearly 68.7% of homeowners have either paid off their mortgages or have at least 50% equity in their homes. That’s right—almost 70% of homeowners are sitting on a goldmine of equity!
How Understanding Your Equity Can Ease the Selling Process
Knowing your home equity can remove a lot of the uncertainty around selling your condo or home. With significant equity, you’ll have more flexibility in choosing your next home, negotiating deals, and even covering moving expenses. And the best part? Our expert real estate team is here to guide you every step of the way.
Leveraging Equity: Your Hidden Asset
Understanding your home equity isn’t just about knowing numbers; it’s about leveraging this asset to your advantage. With our expertise, we can help you strategize on how to use your equity for a down payment on a new place, or even as a financial cushion for future investments. It’s not just about selling your condo or home; it’s about planning your financial future.
Take the Next Step: Unlock Your Home Equity Today
Ready to unlock the potential of your home equity? Don’t navigate this journey alone. Contact our expert real estate team today for a free home value assessment or with any questions you may have. Your future home awaits! 734-761-3060 or info@condohotline.com
Sellers Have an Opportunity with Today’s Home and Condo Prices
As mortgage rates started to rise this year, many homeowners began to wonder if the value of their homes or condos would fall. Here’s the good news. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. The latest data on home and condo prices seems to confirm that trend.
According to data from CoreLogic, home price appreciation has been re-accelerating since November. The graph below shows this increase in home price appreciation in green:
This is largely due to an ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is high. As mortgage rates started to rise this year, many homebuyers rushed to make their purchases before those rates could climb higher. The increased competition drove prices up even more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains:
“Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge.”
And experts say prices are forecast to continue appreciating, just at a more moderate pace moving forward. A recent article from Fortune says:
“. . . the swift move up in mortgage rates . . . doesn’t mean home prices are about to crash. In fact, every major real estate firm with a publicly released forecast model . . . still predicts home prices will climb further this year.”
What This Means for You
If you’re thinking about selling your condo or house, you should know you have a great opportunity to list your home and capitalize on today’s home price appreciation. As prices rise, so does the value of your condo or home, which gives your equity a big boost.
When you sell, you can use that equity toward the purchase of your next property. And at today’s record-level of appreciation, that equity may be enough to cover some (if not all) of your down payment.
Bottom Line
History shows rising mortgage rates have not had a negative impact on condo and home prices. Now is still a great time to sell thanks to ongoing price appreciation. When you’re ready to find out how much equity you have in your current property and what’s happening with home and condo prices in your local area, let’s connect at 734-761-3060 or info@condohotline.com.