Should You sell?

There’s no denying mortgage rates are having a big impact on today’s housing market. That may leave you with some questions about whether it still makes sense to sell your house and make a move. Here are three of the top questions you may be asking – and the data that helps answer them.

1. Should I Wait To Sell?

If you’re thinking about waiting to sell until after mortgage rates come down, here’s what you need to know: so are a ton of other people. While mortgage rates are forecasted to come down later this year, waiting could mean you’ll be dealing with a lot more competition. As Bright MLS says:

“Even a modest drop in rates will bring both more buyers and more sellers into the market.”

This means if you wait it out, you might face rising prices and more multiple-offer scenarios when you buy your next home. Jumping in now could give you a strategic advantage.

2. Are Buyers Still Out There?

You might think no one is moving right now, but there are still plenty of active buyers. Let’s dive into the data to see what’s really happening.

The ShowingTime Showing Index measures how frequently buyers are touring homes. The graph below shows buyer activity for March over the past seven years.

You can see demand has dipped since the ‘unicorn’ years (shown in pink), a result of factors like higher mortgage rates, rising prices, and limited inventory. However, when you compare today’s demand with the last normal years in the market (2018-2019), you’ll get a whole new perspective.

Focus on the blue bars, and you’ll see that 2024 still stacks up favorably. Nationally, demand remains high compared to the last normal years in the housing market. This means there’s still a robust market for your house.

3. Can I Afford To Buy My Next Home?

Worried about affording your next move with today’s rates and prices? Consider this: you probably have more equity in your current home than you realize.

Homeowners have gained record amounts of equity over the past few years, and this equity can significantly impact your next home purchase. You might even have enough to be an all-cash buyer and avoid taking out a mortgage altogether. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“ . . . those who have earned housing equity through home price appreciation are the current winners in today's housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”

Bottom Line

If these three questions have been holding you back from selling, hopefully, this information helps. A recent survey from Realtor.com shows more than 85% of potential sellers have been considering selling for over a year. That means there are many sellers like you who are on the fence.

But that same survey also talked to sellers who recently decided to list, and 79% of those recent sellers wish they’d sold sooner.

If you want to talk more about any of these questions or need more information, let’s connect. It’s a dynamic market, and having the right strategy could make all the difference.