Your Needs Matter More Than Today’s Mortgage Rates
Are you thinking about selling your house right now? Often, this is indicative that something in your life has changed. While things like mortgage rates are a crucial part of this process, keeping the reason you originally wanted to make a change at the forefront of your decision is essential.
Mortgage rates have climbed from the record lows we saw in recent years, which impacts affordability. With the current Kansas City housing rates, some homeowners hesitate to sell and have a higher mortgage rate on their next home. As Danielle Hale, Chief Economist at Realtor.com, explains:
“. . . homeowners who locked in a 30-year fixed rate in the 2-3% range don’t necessarily want to give that up in exchange for a rate in the 6-7% range.”
While this is an important consideration, your lifestyle and changing needs should matter more. Here are a few of the most common reasons people sell today, any one of which may be more important than keeping your current mortgage rate.
As Ali Wolf, Chief Economist at Zonda, says in a recent tweet:
“First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced.”
Many life changes, such as a new job, can be a source of relocation. If you live in suburbia and just landed your dream job in NYC, you might consider selling your home and moving to the city. Additionally, a desire to be closer to friends and loved ones, live in a dream location, or experience a change in scenery can all motivate a move to a new area.
Many homeowners decide to sell to move into a larger home. Do you currently need more room to entertain? Are you looking to add a home office, gym, or additional bedrooms to accommodate a growing family? If you’re living in a condo and need more space, it may be time to find a home that better fits those needs.
With inflation driving up everyday expenses, homeowners may also decide to sell to reduce maintenance and costs. Perhaps someone has recently moved out of the home, leaving more space than needed. Have you recently retired and want to move somewhere you can enjoy the warm weather and have less house to maintain? Your new lifestyle may be better suited for a different home.
Change in Relationship Status
Divorce, separation, or marriage are also common reasons individuals look to buy different homes. For example, living under one roof may be challenging during a recent separation. In such circumstances, looking into selling or downsizing might be worth it.
Particular mobility challenges or health issues require specific living arrangements or modifications. A different house might be better equipped for these challenges than where you currently live. One example is selling your home and using the proceeds to pay for an assisted living facility unit.
As you can see, many different life circumstances can affect the decision to sell your home. As a recent article from Bankrate says:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”
Are you ready to sell your house to make a move? The Just Say Home real estate experts are here to help you navigate the process and find a home that meets your current needs.