Now’s the Time To Upgrade to Your Dream Home

Now’s the Time To Upgrade to Your Dream Home

If you’ve been considering selling your house to move up to a larger or nicer home, you’re not alone. A recent Inman survey indicates that the primary motivator for today’s homebuyers is the desire for more space or an upgraded home (see graph below):

However, there’s a good chance that, like many others, you’ve been postponing that goal due to recent market challenges. This hesitation is understandable—when considering an upgrade that could raise your monthly housing costs, affordability plays a significant role in deciding when to make your move. The good news is that now is actually a great time to pursue that upgrade. Here’s why.

You Have a Lot of Equity To Leverage

One of the key advantages in today’s market is the amount of equity you’ve likely accumulated in your current home over the years. Despite recent changes in the housing market, national home prices have consistently increased, contributing to the equity that homeowners currently possess. Selma Hepp, Chief Economist at CoreLogic, articulates this point effectively:

“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”

What does this mean for you? If you’ve been in your home for several years, you’re likely sitting on a substantial amount of equity. You can use that equity toward the down payment on your next home, helping to keep your borrowing amount within a comfortable range.

This can make upgrading more attainable than you might realize. If you’re curious about how much equity you’ve built up over the years, ask your real estate agent for a professional equity assessment.

Mortgage Rates Have Fallen, Boosting Your Purchasing Power

Another significant reason why now is an excellent time to make your move is that mortgage rates are trending down. Lower rates can make your future monthly payments more manageable and enhance your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), highlights:

“When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.”

This provides you with greater flexibility when searching for homes and may enable you to afford a property that was previously beyond your reach. A trusted lender can collaborate with you to develop the best plan for your budget.

Bottom Line

If you’re ready to sell your current home and find the larger, nicer property you’ve been dreaming of, don’t wait. Your equity, combined with lower mortgage rates, places you in a strong position to make that move today.

To ensure you make the best decisions and maximize your current market advantage, let’s connect so you have an expert to guide you through every step of the homebuying process.