3 Good Reasons to Sell Your Home Regardless of What Interest Rates Do

There is a lot of conversation around real estate right now, including how fluctuating interest rates are impacting the market. You may want to take the leap and put your home on the market, but you are worried about the timing and concerned that it’s not right because of what you are hearing. Before you decide whether to sell or stay, go beyond speculation about what the future may hold and look at the present moment.  

• Home Prices Are Still Up and Home Equity Has Increased

Home prices are still up from last year. The median list price in February was 6.3% higher than this same month last year. Appreciating home prices also equals an increase in equity. You have likely built up a considerable amount. Homeowner equity levels have risen to a near-40-year high of 70% nationwide. For example, if you are a homeowner with 70% equity in a house currently worth $400,000, you would walk away with $280,000 in seller proceeds before closing costs. You could put that money toward buying a new home, with a strong possibility that you can make a cash offer.

You can figure out how much equity you have in your home by subtracting the amount you owe on all loans secured by your house from its appraised value. This includes your primary mortgage as well as any home equity loans or unpaid balances on home equity lines of credit.  Use Bankrate’s Home Equity Calculator to find out how much equity you might have in your home.

• Low Home Inventory Equals Less Competition

People are living in their homes longer. 2020 had anyone who could do so working from home and impacted the assumption that being at work meant commuting to an office. A large part of the workforce has continued to work from home. Many people took advantage of low interest rates and refinanced, resulting in lower payments and increased home equity. More baby boomers are staying in their homes, even after becoming empty nesters who previously were more likely to downsize.

New listings get a lot of attention, and that attention tends to result in fast sales and less time that your home stays on the market. Nebraska Realty offers Market Stats which gives you a monthly average of how many days homes are on the market, among other interesting statistics.

• No One Can Predict the Future

It is impossible to accurately predict whether mortgage rates will go up or down or by how much. Avoid delaying major life decisions based on “what ifs”.  Base the decision to sell your home on what is happening now and your own needs. No matter what interest rates and home prices do next, sometimes you need to move due to a new job, a growing family, or some other major life change. The decision to move and the home that you end up buying is an emotional decision. It is not usually based on numbers on a spreadsheet.

If you need to move or want something different, then the right time to sell is now. Do not hold off on an important life decision purely because you are trying to time the market and wait for a better deal, or because you do not think you can sell your home for as high a price as your neighbors down the block did last year. The right time to sell is not just about money. It is about you and the quality of your life.

If the time is right for you to sell your home, I would love to set up a meeting to talk about it! {Insert agent information}