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Nowâs a Great Time To Sell Your House
Thinking about selling your house? If you are, you might be weighing factors like todayâs mortgage rates and your own changing needs to figure out your next move.
Hereâs something else to consider. According to the latest Home Purchase Sentiment Index (HPSI) from Fannie Mae, the percent of respondents who say itâs a good time to sell is on the rise (see graph below):
Why Are Sellers Feeling so Optimistic?
One reason why is because right now is traditionally the best time of year to sell a house. A recent article from Bankrate says:
âLate spring and early summer are generally considered the best times to sell a house. . . . While todayâs rates are relatively high, low inventory is still keeping sellers in the driverâs seat in most markets.â
These are the seasons when most people move. That means buyer demand grows. And because there still arenât enough homes for sale to meet that demand, sellers see some serious perks. According to Rocket Mortgage:
âHomes that are listed at the end of spring and the beginning of summer typically sell faster at a higher sales price.â
What Does This Mean for You?
More sellers are coming to realize conditions are ripe for a move. And thatâs one reason why weâre seeing more homeowners put their homes up for sale. If you think you might want to get in on the action, itâs a good idea to start preparing.
A local real estate agent can help you get your house ready by offering advice on how best to fix it up and make it appealing to buyers in your area.
They also know if you list during the peak buying seasons of spring and early summer, you might sell quickly and for a higher price.
Bottom Line
If you list during the spring and early summer, you might sell your house quickly and for a higher price. When youâre ready to make the most of todayâs sellerâs market, letâs get in touch.
April 2024 Eastside Market Update
The stats finally caught up! Year-over-year appreciation is a whomping 19% with a majority of that realized in 2024. BUT we arenât quite at the peak of 2022âŚI anticipate appreciation to slow and prices to level out for the rest of the year, but time will tell. At 0.6 months supply of inventory, there simply arenât enough homes for buyers and supply/demand is what drives prices. But, with prices increasing and no relief in interest rates, affordability is an issue that will slow many buyers.
Should I Move with Todayâs Mortgage Rates?
When mortgage rates spiked up over the last few years, some homeowners put their plans to move on pause. Maybe you did too because you didnât want to sell and take on a higher mortgage rate for your next home. But is that still the right strategy for you?
In todayâs market, data shows more homeowners are getting used to where rates are and thinking it may be time to move. As Mark Zandi, Chief Economist at Moodyâs Analytics, explains:
âListings are up a bit as life events and job changes are putting increasing pressure on locked-in homeowners to sell their homes. Homeowners may also be slowly coming to the realization that mortgage rates arenât going back anywhere near the rate on their existing mortgage.â
A recent study from Bank of America sheds light on some of the things homeowners say would make them sell, even with rates where they are right now (see visual below):
What Would Motivate You To Move?
Now that you know why other people would move, take a minute to think about what would make a move worth it for you. Is it time to take a chance and go for your dream job, even though itâs not local? Are you looking for a neighborhood that has more to offer and a close-knit sense of community? Maybe you just need more space, youâre looking for your next great adventure, or you want a house that opens up rental opportunities to pad your income.
And hereâs something else to consider. Mortgage rates are still expected to go down over the course of the year. And once that happens, thereâs going to be a big rush of buyers jumping back into the market. While you could delay your plans until rates drop, youâll only have more competition with those buyers if you do.
So, does that mean itâs worth it to move now, even with rates where they are? The answer is: that it depends.
You’ll want to consider todayâs mortgage rates, where theyâre expected to go from here, and what would prompt you to want to make a change as you decide on your next steps. An expert can help with that.
Bottom Line
Other homeowners are getting used to rates and deciding to move. Letâs chat to go over what matters most to you and if itâs time for you to jump back into the market too.
Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami
Have you heard the term âSilver Tsunamiâ getting tossed around recently? If so, hereâs what you really need to know. That phrase refers to the idea that a lot of baby boomers are going to move or downsize all at once. And the fear is that a sudden influx of homes for sale would have a big impact on housing. Thatâs because it would create a whole lot more competition for smaller homes and would throw off the balance of supply and demand, which ultimately would impact home prices.
But hereâs the thing. There are a couple of faults in that logic. Letâs break them down and put your mind at ease.
Not All Baby Boomers Plan To Move
For starters, plenty of baby boomers donât plan on moving at all. A study from the AARP says more than half of adults aged 65 and older want to stay in their homes and not move as they age (see graph below):
While itâs true circumstances may change and some people who donât plan to move (the red in the chart above)Â may realize they need to down the road, the vast majority are counting on aging in place.
As for those who stay put, theyâll likely modify their homes as their needs change over time. And when updating their existing home wonât work, some will buy a second home and keep their original one as an investment to fuel generational wealth for their loved ones. As an article from Inman explains:
âMany boomers have no desire to retire fully and take up less space . . . Many will modify their current home, and the wealthiest will opt to have multiple homes.â
Even Those Who Do Move Wonât Do It All at Once
While not all baby boomers are looking to sell their homes and move â the ones who do wonât all do it at the same time. Instead, itâll happen slowly over many years. As Freddie Mac says:
âWe forecast the âtsunamiâ will be more like a tide, bringing a gradual exit of 9.2 million Boomers by 2035 . . .â
As Mark Fleming, Chief Economist at First American, says:
âDemographics are never a tsunami. The baby boomer generation is almost two decades of births. That means theyâre going to take about two decades to work their way through.â
Bottom Line
If you’re stressed about a Silver Tsunami shaking the housing market overnight, don’t be. Baby boomers will move slowly over a much longer period of time.
Whatâs the Latest with Mortgage Rates?
Recent headlines may leave you wondering whatâs next for mortgage rates. Maybe youâd previously heard there were going to be cuts this year that would bring rates down. That refers to the Federal Reserve (the Fed) and what they do to their Fed Funds Rate. While cutting, or lowering, the Fed Funds Rate doesnât directly determine mortgage rates, it does tend to impact them. But when the Fed met last week, a cut didnât happen â at least, not yet.
There are a lot of factors the Fed considered in their recent decision and most of them are complex. But you donât need to be bogged down by those finer details. What you really want is the answer to this question: does that mean mortgage rates arenât going to fall? Hereâs what you need to know.Â
Mortgage Rates Are Still Expected To Drop This Year
While it hasnât happened yet, that doesnât mean it wonât. Even Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools:
âWe believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.â
When this happens, history shows mortgage rates will likely follow. That means hope isnât lost. As a recent article from Business Insider explains:
âAs inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .â
What This Means for You
But you donât necessarily want to wait for it to happen. Mortgage rates are notoriously hard to forecast. There are so many factors at play and any one of those can change the projections as the economy shifts. And itâs why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says:
âWell, mortgage rate projections are just that, projections, not promises and don’t forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there’s always the refinance option if mortgage rates are lower in the future.â
Basically, if youâre looking to move and trying to time the market, donât. If youâre ready, willing, and able to move, it may still be worth it to do it now, especially if you can find the home youâve been searching for.
Bottom Line
If youâre looking to buy a home, letâs connect so you have someone keeping you up-to-date on mortgage rates and helping you make the best decision possible.
