If you have been thinking about selling your home this year, time is of the essence! In 2020, we began to see mortgage rates hit historic lows, and although mortgage rates are beginning to rise, they are still well below the average when compared to the last five decades. However, all good things come to an end. As rates continue to increase, buyers will be less eager to jump the gun on home purchases.
Most sellers want to balance the profits from the sale of their current home with their investment on a new home. If this is the case for you – you may be in luck. Michele Harmon Team has four reasons why this Spring may be blooming with opportunity.
- Inventory is Still Low
We are still experiencing a seller’s market. Since there are significantly more buyers than homes available, home buyers will be eager to place an offer on your home. Today’s lack of inventory will allow your home to be more appealing to buyers.
- Your Growing Equity Can Open Many Doors
Due to the recent home price appreciation, home owners have gained record amounts of equity. CoreLogic reported that the average Texas home owner gained $45,000 in equity over the last year! This remarkable equity increase can open so many doors for you, including the doors to your dream home! If you have been holding off on selling because you are concerned about how rising prices will impact your home search, take comfort in knowing your equity can help fund your move. It could be exactly what you need to cover the down payment on your next home!
- Mortgage Rates are Increasing
Although mortgage rates have been steadily climbing this year, they are still well below the average of the last five decades. The average mortgage rate throughout the 2000s was 6.27% and the 1990s had an average of 8.12%. On March 24, 2022, Freddie Mac reported 4.42% as the average 30-year mortgage rate.
Experts believe mortgage rates will rise as we head deeper into 2022. Taylor Marr, Deputy Chief Economist at Redfin says, “Redfin’s expectation is that rates will continue to rise steadily through April – to perhaps 4.4% by the end of the month. While there may be global events that could counteract this rise, such as the war in Eastern Europe and new variants of COVID-19 spreading in Asia, the likely picture is that we will not see rates under 4%. The chance of rates increasing 20-30 basis points by the end of April is only growing.”
If you have been on the fence about selling your home, it is important to act now because once mortgage rates start rising, it will cost you more to purchase your next home. Michele Harmon Team can help you kickstart the process so you can make your next purchase before rates start climbing further.
- Your Home has Likely Increased in Value
The recent imbalance of supply and demand has allowed home prices to skyrocket! Home values will continue to increase as long as this imbalance continues, but what exactly does this mean for you as a seller AND buyer?
If you are selling and have intentions of buying a new home that better suits your needs, your growing equity will give you the leverage you need to get ahead of the curve. If you purchase your next home before prices climb even higher, you can find peace of mind in knowing the ongoing home price appreciation is growing the value of your new investment.
Are you curious about exactly how much home values have risen in the Houston area? Check out these numbers:
- The most recent HAR market report stated that the average sales price for homes in the Houston area saw an increase of 13.4% from February 2021.
- The most recent HAR market report stated that the median sales price for homes in the Houston area saw an increase of 19.3% from February 2021.
- CoreLogic reported that the average Texas home owner gained $45,000 in equity over the last year.
Want to know the value of your home? Enter your home address for a complimentary home valuation below.
The Bottom Line
If you hope to win as a seller AND a buyer, this Spring is blooming with opportunity. Get connected with Michele Harmon Team today to take advantage of today’s extraordinary sellers’ market. Call us at 713-818-1330 or complete the contact form below!