When you list your home, it becomes the center of attention. And, if you work with a real estate agent to price your home right, you may anticipate it to sell quickly this season, with numerous strong offers.
2. Your equity is increasing at an unprecedented rate
Homeowners are sitting on historic amounts of equity thanks to recent house price gains, according to CoreLogic's latest Homeowner Equity Insight report. The average homeowner has gained $55,300 in equity over the last year, according to the survey.
You may be able to make a move with that much equity. If you've been putting off selling because you're scared about how rising prices may affect your future home search, don't worry. Your equity can help you get where you want to go. It could be exactly what you need to cover a big chunk – if not all – of your future home's down payment.
3. The cost of a mortgage is rising
While mortgage rates have risen this year, they are still lower than in previous decades. Mortgage rates averaged 6.27 percent in the 2000s. The average rate during the 1990s was 8.12%.
To put things in perspective, according to Freddie Mac, the current average 30-year fixed mortgage rate is 3.85 percent. While recent global uncertainties prompted rates to fall modestly in the short term, experts predict that rates will climb in the coming months. According to Doug Duncan, Fannie Mae's Senior Vice President and Chief Economist:“For homebuyers, we believe that borrowing costs will likely rise with the increase in mortgage rates….”
You'll have to pay extra for your future home if this happens. That's why, if you're ready to sell, you should act quickly. Work with a trustworthy expert to jumpstart the process so you may take important steps toward your next purchase before interest rates rise even more.
4. Home prices are also rising
Because of a mismatch between supply and demand, home prices have soared in recent years. And the rise in home values will continue as long as that imbalance exists.
So, what does this entail for you? If you're selling to move into the home of your dreams or downsize into something that better meets your current requirements, you may get ahead of the curve by using your increasing equity to buy your next home before prices rise.
And, once you've made your purchase, you'll have peace of mind knowing that your new investment is growing in value due to continued home price appreciation.
This spring could be your golden opportunity to win when it comes to selling and buying. Connect with a local real estate agent to gain the knowledge you need to profit from today's amazing seller's market.