Timing Your Next Move
Spring is typically the best time to sell a home, but this year might be different. If you’re thinking about listing your home in April or May, here are some factors that might cause you to accelerate your timeline.
Dropping rates
Rates for a 30-year fixed mortgage were around 6% for the first half of 2023 before peaking at nearly 8% in October. This year, the National Association of REALTORS® (NAR®) predicts that rates will average around 6.3%. That’s attracting buyers who were priced out of the market by rising rates a year ago. Many are eager to buy and are shopping now rather than waiting until spring.
Shifting inventory
Last year’s rise in mortgage rates drove not only buyers but also sellers to the sidelines, reducing inventory that was already tight. This year, NAR projects a 13.5% increase in existing-home sales and a 19% increase in new-home sales. The longer you wait to list your home, the more competition you’re likely to have.
Rising prices
Home prices are widely predicted to be going up this year. That’s good news for sellers but also impacts your next purchase as a buyer. By getting your home on the market sooner rather than later, you can leverage proceeds from a quick sale to buy your next home before prices rise further.
Untapped equity
According to CoreLogic, the average home mortgage holder in the U.S. is sitting on over $300,000 in home equity. If you’ve been in your home for at least a few years, your equity might cover part or all of the down payment of your next home. Factor-in lower mortgage rates and you might qualify for more home than you thought you could afford.