Nows the Time To Upgrade to Your Dream Home

If youve been wanting to sell your house and move up to a bigger or nicer home, youre not alone. A recent Inman survey reveals the top motivator for todays homebuyers is the desire for more space or an upgraded home (see graph below):

But theres also a good chance you, like many other people, have been holding off on that goal because of recent market challenges. It makes sense when youre planning an upgrade that could increase your monthly housing costs, affordability has a huge impact on when you make your move. But theres good news: nows actually a great time to make that move happen. Heres why.

You Have a Lot of Equity To Leverage

One of the key benefits in todays market is the amount of equity youve likely built up in your current house over the years. Even with recent shifts in the housing market, national home prices have steadily grown, adding to the equity homeowners have today. Selma Hepp, Chief Economist at CoreLogic, explains it well:

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.

What does that mean for you? If youve been in your home for a few years, youre probably sitting on a significant amount of equity. You can put that toward the down payment on your next home, helping keep the amount you borrow within a comfortable range.

This can make upgrading more achievable than you might think. If youre curious how much youve built up over the years, ask your real estate agent for a professional equity assessment.

Mortgage Rates Have Fallen, Boosting Your Purchasing Power

And theres another big reason why nows a great time to make your move: mortgage rates are trending down. Lower rates can help make your future monthly payments more manageable, and they also increase your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), points out:

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.

That gives you more flexibility when shopping for homes and may allow you to afford a house at a price point that was previously out of reach. A trusted lender can work with you to figure out the best plan for your budget.

Bottom Line

If youre ready to sell your current home and find the bigger, nicer home youve been dreaming of, dont wait. Your equity, paired with lower mortgage rates, puts you in a great position to make that move today.

To make the best decisions and get the most out of your current market advantage, work with a trusted real estate professional who can guide you through every step of the homebuying process.