Time to Upgrade to Your Dream Home: Here’s Why It’s a Smart Move

Have you been thinking about selling your current home and upgrading to a more spacious or luxurious one? If so, you’re not alone. According to a recent survey from Inman, one of the primary motivations for today’s homebuyers is the desire for more space and a better home environment. (see graph below):

However, like many others, you might have been hesitant to move forward due to challenges in the real estate market. That’s completely understandable. When upgrading to a home that might come with higher monthly costs, affordability becomes a major factor. The good news? Right now could be the ideal time to make that dream upgrade. Here’s why:

You Have Significant Equity to Work With

One of the best advantages in today’s market is the amount of equity you’ve likely accumulated in your home. Even with recent shifts, home prices have been on a steady rise over the years, giving many homeowners more equity than ever. According to Selma Hepp, Chief Economist at CoreLogic:

“Home price growth has continued, allowing homeowners to accumulate about $315,000 in average equity, which is roughly $129,000 more than before the pandemic.”

What does this mean for you? If you’ve owned your home for several years, you likely have a considerable amount of equity that can be used toward a down payment on your next home. This could significantly reduce the amount you need to finance, making the cost of upgrading much more manageable than you might think. To get a clearer idea of your equity, consider having a professional equity assessment from a trusted real estate agent.

Mortgage Rates Are Trending Down, Increasing Your Buying Power

Another key reason to act now is the current trend in mortgage rates. As rates fall, your monthly mortgage payments can become more affordable, which also boosts your overall purchasing power. Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains:

“When mortgage rates decrease, the interest portion of monthly payments drops, making it easier for borrowers to afford homes that may have been out of reach at higher rates.”

This means you could potentially qualify for a more expensive home than you previously thought. Working with a trusted lender can help you find the best financing options for your specific needs and budget.

Bottom Line

If you’ve been dreaming of selling your current home and upgrading to something larger or nicer, now may be the perfect time. With strong equity in your existing property and favorable mortgage rates, you’re in a great position to make the move.

Let’s connect today to ensure you make the most of the opportunities in the current market and have expert guidance through every step of your homebuying journey.