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

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




Many homeowners thinking about selling have two key things holding them back. That’s feeling locked in by today’s higher mortgage rates and worrying they won’t be able to find something to buy while supply is so low. Let’s dive into each challenge and give you some helpful advice on how to overcome these obstacles.

Challenge #1: The Reluctance 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):

But today, the typical 30-year fixed mortgage rate offered to buyers is closer to 7%. As a result, many homeowners are opting to stay put instead of moving to another home with a higher borrowing cost. This is a situation known as the mortgage rate lock-in effect.

The Advice: Waiting May Not Pay Off

While experts project mortgage rates will gradually fall this year as inflation cools, that doesn’t necessarily mean you should wait to sell. Mortgage rates are notoriously hard to predict. And, right now home prices are back on the rise. If you move now, you’ll at least beat rising home prices when you buy your next home. And, 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

When so many homeowners are reluctant to take on a higher rate, fewer homes are going to come onto the market. That’s going to keep 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 couple of years. Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years.”

Even though you know this limited housing supply helps your house stand out to eager buyers, it may also make you feel hesitant to sell because you don’t want to struggle to find something to purchase.

The Advice: Broaden Your Search

If fear you won’t be able to find your next home is the primary thing holding you back, remember to consider all your options. Looking at all housing types including condos, townhouses, and even newly built homes can help give you more to choose from. Plus, if you’re able to 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. Let’s connect so you’re working with a professional who has the experience to navigate these waters and find the perfect home for you.

22 Properties
Page 1 of 2
$740,000
Neighborhood: Whispering Hills
4
Beds
2F11/2
Baths
3,288
Sq.Ft.
1987
Year Built
2
Days on Site
20240041826
MLS
$45,000
Neighborhood: Kaiser Gardens
2
Beds
1
Baths
652
Sq.Ft.
1938
Year Built
4
Days on Site
20240041664
MLS
$115,000
Neighborhood: Sawyers Keego Harbor Sub
0.18
Acres
4
Days on Site
20240041864
MLS
$280,000
Neighborhood: Grenal # 01
3
Beds
1F11/2
Baths
1,075
Sq.Ft.
1965
Year Built
5
Days on Site
20240041205
MLS
$229,900
Neighborhood: Scotts Addition
3
Beds
2
Baths
1,380
Sq.Ft.
1950
Year Built
7
Days on Site
20240039338
MLS
$309,900
Neighborhood: Ingleside Farms Sub
3
Beds
2
Baths
1,800
Sq.Ft.
1953
Year Built
7
Days on Site
58050144881
MLS
$229,900
Neighborhood: Plum Hollow Estates No 1
3
Beds
1
Baths
1,116
Sq.Ft.
1964
Year Built
8
Days on Site
20240040314
MLS
$330,000
Neighborhood: Coachwood Square # 03
3
Beds
2F11/2
Baths
1,484
Sq.Ft.
1990
Year Built
12
Days on Site
20240039141
MLS
2
Beds
1F11/2
Baths
1,550
Sq.Ft.
14
Days on Site
81024027766
MLS
$325,000
Neighborhood: Warren Park Sub
3
Beds
2
Baths
1,474
Sq.Ft.
1989
Year Built
18
Days on Site
58050143756
MLS
4
Beds
3F11/2
Baths
2,108
Sq.Ft.
1999
Year Built
19
Days on Site
20240036267
MLS
$275,000
Neighborhood: Moulin Rouge Sub No 2
3
Beds
1F11/2
Baths
1,191
Sq.Ft.
1958
Year Built
20
Days on Site
20240036323
MLS

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