Your Needs Are More Important Than Current Mortgage Rates
If you're considering selling your home right now, it's likely that something in your life has changed. And, while mortgage rates are a crucial factor in deciding what you'll buy next, it's critical not to lose sight of why you want to make a shift in the first place.
It is true that mortgage rates have risen from recent record lows, which has an impact on affordability. With interest rates where they are, some homeowners are deciding to hold off on selling because they don't want to move and have to pay a higher mortgage rate on their next house. As Danielle Hale, Chief Economist at Realtor.com, explains:
“. . . homeowners who locked in a 30-year fixed rate in the 2-3% range don't necessarily want to give that up in exchange for a rate in the 6-7% range.”
However, your way of life and changing demands should take precedence. Here are some of the most typical reasons why people sell nowadays. Any of these options may be more essential than maintaining your existing mortgage rate.
As Ali Wolf, Chief Economist at Zonda, says in a recent tweet:
“First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced.”
Changing employment, a desire to be closer to friends and loved ones, wishing to live in a dream location, or simply looking for a change of scenery are all factors that can motivate a move to a new place.
For example, if you live in suburbia and just landed your dream job in NYC, you may be thinking about selling your current home and moving to the city for work.
Many homeowners decide to sell in order to relocate to a larger home. This is especially frequent when there is a need for more entertaining space, a home office or gym, or more bedrooms to accommodate a growing family.
For example, if you live in a condo and decide it's time to look for a larger home, or if your family is increasing, it may be time to look for a property that better meets your needs.
With inflation increasing daily expenses, homeowners may decide to sell in order to reduce maintenance and costs. Or they may sell since someone has recently moved out and there is now more space than needed. It's also possible that they've recently retired or are looking for a change.
For example, suppose you've just begun your retirement and wish to relocate to a warmer climate with fewer housekeeping responsibilities. Your new lifestyle may need relocating to a different location.
Change in Relationship Status
Divorce, separation, or marriage are other common reasons individuals sell their homes.
For example, if you’ve recently separated, it may be difficult to still live under one roof. Selling and downsizing may be better options.
If a homeowner has mobility limitations or health issues that necessitate specific living arrangements or adaptations, they may sell their existing property to find one that is more suitable.
For instance, you could want to sell your house and use the earnings to help pay for a unit in an assisted-living facility.
With higher mortgage rates, there are some affordability challenges right now – but your needs and your lifestyle matter too. As a recent article from Bankrate says:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”
If you're ready to sell your home so you can relocate, let's get in touch so you have an expert on your side to assist you navigate the process and find a home that meets your needs.