If you’re thinking of selling your house this year, timing is crucial. After all, you’ll want to balance getting the most out of the sale of your current home and making the best investment when you buy your next one.
If that’s the case, you should know – you may be able to get the best of both worlds if you start the selling process today.
I’ve been saying it’s a good time to sell for a while, but is that golden opportunity drawing to a close?
Here are four reasons that this Spring maybe your best bet for a sale.
1. The Number of Homes on the Market Is Still Low
Today’s limited supply of houses for sale is putting sellers in the driver’s seat. There are far more buyers in the market today than there are homes available. That means purchasers are eagerly waiting for your house.
2. Your Equity Is Growing in Record Amounts
Seattle homeowners are sitting on huge, record amounts of equity thanks to the recent ballooning of home prices. We’ve seen over 20% appreciation over the last year in some of our popular markets in Puget Sound. That means, if your home started out being worth $500K last year, now it would be worth $600K. You may have made more money by owning a house than working a job all year.
That much equity gives you lots of options when it comes time to make a move. If you’ve been holding off on selling because you’re worried about getting into your next home, rest assured your equity can help fuel your move. It may be exactly what you need to cover a large portion of the down payment on your next home.
3. Mortgage Rates Are Increasing
While it’s true mortgage rates have already begun climbing pretty steeply this year, current mortgage rates are still below what they’ve been in recent decades. In the 2000s when I got started buying homes, the average mortgage rate was 6.27%. In the 1990s when I was busy watching Star Trek Next Gen with the fam every Saturday night, the average rate was 8.12%.
For context, according to Freddie Mac, the current 30-year fixed rate is 3.85%. And while recent global uncertainty caused rates to dip slightly in the near term, experts project rates will keep rising.
As interest rates rise AND prices rise, it will cost more to purchase your next home. That’s why it’s important to act now if you’re ready to sell. Work with a trusted advisor to kickstart the process so you can take key steps to making your next purchase before rates (and prices) climb further.
4. Yep – It’s Still Happening – Home Prices Are Climbing Too
The Economist in me would like to remind you that Home prices have been skyrocketing in recent years because of the imbalance of supply and demand. And as long as that imbalance continues, so will the increases in home values.
What does that mean for you? If you’re selling so you can move into the home of your dreams or downsize into something that better suits your current needs, you have an opportunity to get ahead of the curve by leveraging your growing equity and purchasing your next home before prices climb higher.
And, once you make your purchase, you can find peace of mind in knowing ongoing home price appreciation is also building your equity in your next property, further developing your wealth.
The Bottom Line Is:
If you want to win when you sell and win when you buy, this spring could be your golden opportunity. Let’s connect so you have the insights you need to take advantage of today’s incredible sellers’ market.
This is Emily Cressey with HomeSmart Real Estate In Seattle. You can find me at HomePro Associates.com and, as always, we are here to serve!