Is it Time to Buy a Bigger Home?
Chances are that if you’re like most people, then when it comes to making a move in Real Estate, it can be overwhelming, especially when you already own a home and are looking to move up in the market.
There are many reasons to “move up” in the world of Real Estate such as:
- New Relationship & Marriage
- Growing Family
- Job Promotion
- Job Relocation
- Need Room for “Toys” (RV / Boat, etc)
- Working from Home
Typically when buying a first home, that’s not envisioned as the “forever” home… it acts as a stepping stone to get into the housing market, build up some equity and then when comfortable, a move is made into a larger home, more desirable area or whatever moving up means to you.
Right now we are seeing some of the lowest Mortgage Interest Rates EVER so that makes it a pretty good time to move up. At the beginning of this year, we were seeing rates right around 5%. On a $350,000 loan amount, the savings in interest between a 5% rate and 3.75% rate (roughly where we are today) is $258 per month. That’s HUGE for affordability. In fact, that would equate to about an extra $40,000 in overall purchasing power. That means if you qualified for a $325,000 home 9 months ago, you could be as high as $365,000 now without any other changes to your income or debts.
During the same time, home prices have not rose $40,000 so it’s actually less expensive to buy a home today than it was late last year, despite prices now being a little higher. When you calculate the interest out for 30-years, it a LOT LESS expensive.
Also, when someone is ‘moving up’ in the market, they have an existing home to sell… normally that means the current home will be in an entry level price range. With our inventory being so low, that means those prices are escalating more rapidly than other segments of the market.
Not only can you capitalize on more buying power and less interest over time, but also on increased equity with the sale of your existing property. It’s really a win-win when it comes to moving up in the market right now.
If you’ve been thinking about making a move, let’s chat. We are happy to lay out your full options (investor offer as-is, internet buyer, open market for owner occupants, etc) so you can make an informed decision that’s best for YOUR family. We act as advisers so you’re always the one making the decision; we just help you make the right ones!