As mortgage rates started to rise this year, many homeowners began to wonder if the value of their homes would fall. Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate. Currently, home values continue to grow because of the ongoing imbalance in supply and demand. Specifically, housing supply is still low, and demand is high. As mortgage rates started to rise this year, many homebuyers rushed to make their purchases before those rates could climb higher. The increased competition drove home prices up even more.
Selma Hepp, Deputy Chief Economist at CoreLogic, states that:
“Home price growth continued to gain speed in early spring, as eager buyers tried to get in front of the mortgage rate surge.”
What This Means for You
If you’re thinking about selling your house, now is a great time to do it. Home prices are high, and there are plenty of buyers out there who are willing to pay top dollar for your property. If you want to get the most money possible for your home, now is the time to put it on the market.
As prices rise, so does the value of your home, which gives your equity a big boost. When you sell, you can use that equity toward the purchase of your next home. And at today’s record-level of appreciation, that equity may be enough to cover some (if not all) of your down payment.
Of course, every real estate transaction is unique, and you should always consult with a real estate professional to get the most accurate information specific to your situation. History shows rising mortgage rates have not harmed home prices. Thanks to ongoing price appreciation, now is still a great time to sell your house. Let’s connect when you’re ready to find out how much equity you have in your current home and what’s happening with home prices in your local area.
Liz Norvelle believes that building a relationship based on respect and trust is what truly matters.
The exceptional customer service that Liz provides will establish the groundwork for a relationship with her clients that will continue into the future when you’re ready for your next home or when friends and family come to join you in your new home town.
Please contact Liz, she will take the time to get to know you and assist you in finding a home that best fits your lifestyle needs.