Selling a home is a significant decision that often comes with a mix of excitement and apprehension. In today’s dynamic real estate market, homeowners may hesitate due to concerns about mortgage rates and the availability of suitable new homes. Understanding these concerns and exploring viable solutions can empower you to make informed decisions and move forward with confidence.
Concern 1: Is It a Good Idea to Move Given Current Mortgage Rates?
One of the primary apprehensions for homeowners is the prospect of securing a new mortgage at higher interest rates than their existing one. This concern is valid, especially if you’ve benefited from historically low rates in the past. However, it’s essential to consider the role of home equity in this equation.
Home equity—the difference between your home’s current market value and the remaining balance on your mortgage—has likely increased substantially over recent years due to rising property values. According to CoreLogic, the average homeowner has gained approximately $129,000 in equity since the onset of the pandemic.
Leveraging this equity can significantly offset the impact of higher mortgage rates. A substantial down payment reduces the loan amount needed for your next home, potentially resulting in more favorable loan terms. In some cases, homeowners may have accumulated enough equity to purchase their next property outright, eliminating the need for a mortgage altogether.
Concern 2: Will I Be Able to Find a Home I Like?
Another common worry is the perceived scarcity of desirable homes on the market. While inventory levels have been low in recent years, the situation is improving. Data from Realtor.com indicates that the number of homes for sale has increased by nearly 30% year-over-year, providing buyers with more options.
It’s important to note that inventory levels can vary by region. In Denver, for instance, the market has experienced fluctuations in housing supply. Working with a local real estate expert can provide you with up-to-date information on available properties that meet your criteria.
Strategies to Address These Concerns
1. Consult with a Real Estate Professional: Engaging with a knowledgeable agent can provide personalized insights into the current market conditions and help you develop a tailored strategy for selling and buying.
2. Assess Your Financial Position: Evaluate your current mortgage, home equity, and overall financial health to understand your purchasing power and financing options.
3. Explore Diverse Housing Options: Consider a range of properties, including new constructions, which may offer more availability and modern amenities.
4. Stay Informed About Market Trends: Keep abreast of local real estate trends to make timely and informed decisions.
While concerns about mortgage rates and housing availability are understandable, they need not deter you from selling your home. By leveraging your home equity and staying informed about market developments, you can navigate these challenges effectively. At Corken + Company Real Estate Group, we are committed to guiding you through every step of the process, ensuring a seamless transition to your next home.
Contact Corken + Company today to schedule a consultation. Our team of experienced professionals is here to provide personalized advice and innovative strategies tailored to your unique needs.
