There’s no denying mortgage rates are significantly impacting today’s housing market. This may leave you wondering if it still makes sense to sell your house and make a move. Let’s address three of the top questions you might have and provide some data-driven insights.
1. Should I Wait To Sell?
Considering waiting to sell until mortgage rates come down? Here’s what you need to know: many others are thinking the same. While mortgage rates are expected to decrease later this year, waiting might mean facing increased competition as more buyers and sellers re-enter the market. According to Bright MLS:
“Even a modest drop in rates will bring both more buyers and more sellers into the market.”
If you decide to wait, you may encounter rising prices and more multiple-offer scenarios when purchasing your next home.
2. Are Buyers Still Out There?
Despite some people holding off, many buyers are still active in today’s market. The ShowingTime Showing Index, which measures how frequently buyers are touring homes, offers insight. The graph below shows buyer activity for March over the past seven years:
Demand has dipped since the ‘unicorn’ years (highlighted in pink) due to higher mortgage rates, rising prices, and limited inventory. However, comparing today’s demand to the last normal market years (2018-2019) provides a clearer picture. The blue bars reveal that demand in 2024 is still high compared to those normal years, indicating a strong market for selling your house.
3. Can I Afford To Buy My Next Home?
Worried about affording your next home with current rates and prices? You likely have more equity in your current home than you realize. Homeowners have gained record amounts of equity in recent years, which can significantly impact your next purchase. You might even have enough equity to buy your next home with all cash, avoiding a mortgage altogether. As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:
“ . . . 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.”
Closing Thoughts
If these questions have been holding you back from selling, hopefully, this information provides some clarity. A recent Realtor.com survey found that over 85% of potential sellers have been considering selling for more than a year. Many sellers, like you, are on the fence.
Interestingly, 79% of recent sellers wish they’d sold sooner. If you want to discuss these questions further or need more information, let’s connect.
