Thursday, October 24, 2024 / by Dick Keenan
Now Is the Perfect Time to Upgrade to Your Dream Home
If you’ve been thinking about selling your house and upgrading to a larger or more luxurious one, you’re not alone. According to a recent survey by Inman, many buyers today are motivated by the desire for more space or an upgraded home.
However, like many people, you may have hesitated to take the plunge due to recent market challenges. It’s understandable—upgrading often means higher monthly payments, so affordability plays a big role in deciding when to make your move. The good news? Now might be the ideal time to turn your dream into reality. Here’s why.
You’ve Likely Built Up Substantial Equity
One of the biggest advantages you have right now is the equity you’ve accumulated in your current home. Over the years, home prices have continued to rise, even with some shifts in the market. According to Selma Hepp, Chief Economist at CoreLogic:
“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”
So, if you’ve been in your home for a while, you probably have a significant amount of equity to work with. You can use that equity as a down payment on your next home, making it more affordable and potentially keeping your loan amount within a comfortable range. If you’re unsure how much equity you’ve built up, your real estate agent can help you with a professional assessment.
Mortgage Rates Are Falling, Increasing Your Buying Power
Another reason it’s a great time to upgrade is that mortgage rates have been trending down. Lower rates can make your monthly payments more affordable and also give you more purchasing power. Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains:
“When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.”
This means you may now be able to afford a home that was previously out of your budget. By working with a lender, you can find the best mortgage plan that fits your financial goals.
Bottom Line
If you’re ready to upgrade to the larger, more luxurious home you’ve been dreaming about, don’t wait. The combination of your current equity and lower mortgage rates makes this a prime time to make your move.
For expert guidance on selling your current home and navigating the buying process, let’s connect so you can take full advantage of today’s market opportunities.