Upgrade to Your Dream Home: The Perfect Time is Now!

If you've been thinking about selling your home to move into a larger or more upgraded space, you're not alone. According to a recent Inman survey, the top motivation for today’s homebuyers is the desire for more room or a better home (see graph below):

However, you might be among the many who have put off this goal due to recent market challenges. It’s understandable— affordability is a major factor when considering an upgrade that may raise your monthly housing costs. The good news? Now is actually a fantastic time to make that move. Here’s why.

You Have a Lot of Equity To Leverage

One of the biggest advantages of today’s market is the equity you’ve likely built up over the years. Despite recent changes, home prices have steadily increased, boosting homeowners' equity. According to Selma Hepp, Chief Economist at CoreLogic:

“Persistent home price growth has continued to fuel home equity gains for existing homeowners, who now average about $315,000 in equity—nearly $129,000 more than at the start of the pandemic.”

What does this mean for you? If you’ve owned your home for several years, you may have accumulated a significant amount of equity, which can be used to make a larger down payment on your next home, potentially keeping your loan amount within a comfortable range.

This means upgrading could be more affordable than you think. To find out how much equity you have, consider asking your real estate agent for a professional equity assessment.

Mortgage Rates Are Dropping, Increasing Your Buying Power

Another key reason why now is a great time to move is the current trend in falling mortgage rates. Lower rates can help make your monthly payments more manageable and significantly increase your purchasing power. As Nadia Evangelou, Senior Economist and Director of Real Estate Research at the National Association of Realtors (NAR), explains:

“When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to qualify for mortgages that may have been unaffordable at higher rates.”

This gives you greater flexibility when searching for your next home and might enable you to afford properties that were previously beyond your reach. Partnering with a trusted lender can help you determine the best strategy for your budget.

Bottom Line

If you’re ready to upgrade to the home you’ve always dreamed of, don’t delay. With the combination of built-up equity and lower mortgage rates, now is an ideal time to make your move. For guidance throughout the homebuying process and to make the most of today’s market, connect with a trusted real estate professional who can support you every step of the way.