Mortgage rates have risen from their previous record lows. Consequently, some homeowners are postponing selling their house to avoid higher mortgage rates on their next home. According to Danielle Hale, Chief Economist at Realtor.com,
homeowners who secured a 30-year fixed rate in the 2-3% range hesitate to give it up for a rate in the 6-7% range.
However, other factors can and should impact your decision to buy or sell a home. Below are some common life and lifestyle influences on why many people chose to buy or sell a house. We call these “Seasons of Change” at Purpose Driven Real Estate Group. Many times, these reasons outweigh the importance of preserving your current mortgage rate… especially when you can refinance later when rates come back down.
Seasons of Change / Common Reasons People Chose to Buy or Sell a Home
Changes in employment, the desire to be closer to loved ones, retiring to a dream location, or simply craving a change of scenery can inspire a move.
Example: If you've landed a dream job in downtown Atlanta while living remotely in one of Georgia’s lake communities, selling your current home and relocating to the city may be on your mind.
Homeowners often sell to transition into a larger property, especially when more space is needed to accommodate a growing family, a home office or even a fenced in back yard
Example: If you live in a two-bedroom condo and are expecting baby number three, it's likely time to find a home to accommodate the whole family.
Rising expenses to maintain a large home may prompt some to sell. Others look to downsize after the kids have moved out and a large home is no longer necessary.
Example: As you enter retirement, you may prefer a smaller home with less maintenance to spend time enjoying a more relaxed lifestyle.
- Change in Relationship Status
No matter what the interest rates are, divorce, separation, and marriages happen. These life changes prompt people to sell their current homes and seek new ones.
Example: If you've recently separated, selling and downsizing may be favorable alternatives to sharing the same roof.
- Health Concerns
Homeowners facing mobility challenges or health issues may long to sell their current homes to find more suitable living arrangements over renovating to make the necessary modifications.
Example: You may consider selling your home in favor of an assisted-living facility that caters to your specific needs.
Despite higher mortgage rates impacting some buyers’ purchasing power, creating the life you need and/or desire should weigh heavily on your decision to sell or buy a home. Although it is counter intuitive, we believe now is a great time to buy a house. When the rates come down, those who have been on the sidelines are going to flood the market which will, consequently, increase the prices of homes. We believe people should buy the home the love that they can afford NOW while there’s less competition. It is very common for homeowners to refinance their loans when rates come down. This approach is recommended versus paying too much for a home at a lower interest rate.
Bottom Line: If you're wondering if it is time to sell your house and make a move, feel free to contact us for a private and complimentary consultation to discuss your specific situation. Having an expert by your side can help you weigh the pros and cons of whether it is the right time to buy a home that reflects your life and lifestyle goals.