KC Sellers: Don’t Let These Two Things Hold You Back

Did you know most Kansas City homeowners thinking about selling have two critical things holding them back? They feel locked in by today’s higher mortgage rates and worry they won’t be able to find something to buy while supply is so low. Let’s look at challenges, and you will discover some helpful advice on how to overcome these obstacles.

Challenge #1: Will I Have To Take On A Higher Mortgage Rate?
According to the Federal Housing Finance Agency (FHFA), the average interest rate for current homeowners with mortgages is less than 4% (see graph below):

As of August 1, 2023, the typical 30-year fixed mortgage rate offered to buyers is closer to 7%. As a result, some homeowners in the Kansas City market opt to stay put instead of moving to another home with a higher borrowing cost, otherwise known as the mortgage rate lock-in effect.

The Advice: Waiting Might Cost You
As inflation cools, experts project mortgage rates may gradually fall this year - but that doesn’t necessarily mean you should wait to sell. Mortgage rates are notoriously hard to predict! Currently, home prices are back on the rise. Moving now will allow you to beat rising home prices in the KC area when you buy your next home. Additionally, if experts are right and rates fall, you can always refinance later if that happens.

Challenge #2: The Fear of Not Finding Something to Buy
Fewer homes will come onto the market when so many are reluctant to take on a higher rate, keeping inventory low.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), explains: “Inventory will remain tight in the coming months and even for the next few years. Some homeowners are unwilling to trade up or down after locking in historically-low mortgage rates in recent years.”

The Advice: Broaden Your Search
There are still NUMEROUS housing opportunities in the Kansas City real estate market! It’s important to remember to consider all your options. Our realtors on the Just Say Home team are deeply connected in the KC area and know of homes not publicly listed on the MLS!

Looking at all housing types, including condos, townhouses, and even newly built homes, can give you more choices. Plus, if you can work fully remote or hybrid, you may be able to consider areas you hadn’t previously searched! If you can look further from your place of work, you may have more affordable options.

Bottom Line
Instead of focusing on the challenges, focus on what you can control - moving before house prices continue to rise. Let’s connect! The Just Say Home KC Team has the experience to navigate these waters and find the perfect home for YOU! Call or text us at 816-656-2816; we look forward to assisting you.