Questions You May Have About Selling Your House

Questions You May Have About Selling Your House

Mortgage rates are significantly influencing today's housing market, which might lead you to question whether it's still a good time to sell your house and make a move.

Here are three common questions you might be asking, along with the data that can help you find the answers:

1. Should I Wait To Sell?

If you're considering delaying your home sale until mortgage rates decrease, you're not alone—many others are thinking the same.

However, while there are forecasts suggesting that mortgage rates may drop later this year, waiting for this dip could mean facing much more competition. Both buyers and sellers might re-enter the market at that time, increasing the competition. As Bright MLS notes:

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

That means if you wait it out, you’ll have to deal with things like prices rising faster and more multiple-offer scenarios when you buy your next home.

2. Are Buyers Still Out There?

While some people are choosing to wait, there are still plenty of buyers actively looking for homes right now. The data to support this comes from the ShowingTime Showing Index, which tracks the frequency of home tours by buyers.

The graph below, which utilizes this index, displays buyer activity for March (the latest data available) across the past seven years, illustrating the current level of interest in the housing market:

Indeed, the demand has somewhat decreased compared to the 'unicorn' years, marked in pink on the graph. This shift is a response to various market factors, including higher mortgage rates, escalating prices, and limited housing inventory. However, for a clearer picture of today's market dynamics, it's more accurate to compare the current demand with what was considered normal during the last typical market years of 2018-2019, rather than the extraordinary 'unicorn' years.

By focusing solely on the blue bars in the graph, which represent recent data, you can gauge how 2024 measures up. This comparison provides a fresh perspective on the current state of demand in the housing market.

Nationally, demand is still high compared to the last normal years in the housing market (2018-2019). And that means there’s still a market for your house to sell.

3. Can I Afford To Buy My Next Home?

If concerns about affording your next move with today's rates and prices are holding you back, it's worth considering the equity you might have accumulated in your current home. Over the past few years, homeowners have seen significant increases in home equity due to rising property values. This increase in equity can be a game-changer when purchasing your next home. You might even find that you have enough equity to buy your next home with cash, allowing you to bypass the mortgage process entirely. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), elaborates on this topic:

“ . . . 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.”

Bottom Line

If you've been pondering these three questions and they've been a barrier to selling your home, having this information might provide some clarity. A recent survey from Realtor.com reveals that more than 85% of potential sellers have been contemplating selling for over a year, indicating that many sellers are hesitating just like you.

Interestingly, the same survey also gathered insights from sellers who recently made the decision to list their homes. Notably, 79% of these recent sellers expressed regret over not selling earlier. This statistic suggests that taking action sooner rather than later could lead to more satisfaction with the selling process.

If you'd like to discuss any of these questions further or need more detailed information, let's connect. I'm here to help you navigate through your options and provide the insights you need to make an informed decision.