As you plan out your goals for 2022, moving up to your dream home or scaling down may top the list. But, how do you know when to make your move? Research shows that the cost of waiting for the perfect moment typically exceeds the benefit of even perfect timing. Your mind says you should wait for just the right time so you can get the most out of your current house. Also, you want to know you’re making a good investment in your new home.
All worthy objectives but there is another side to this and not recognizing it could cost you dearly. What you may not realize is that the opportunity to get the best of both worlds is already here. Unfortunately, the two competing goals cause most people to freeze in indecision - to WAIT and watch as the moment passes them by.
You don’t want to wait until spring to put your plan into action. The current market conditions make this winter an ideal time to move, perhaps the most ideal we will see for a while for the following reasons.
1. Home Inventory Is Still Low
One of the major driving forces for the near meteoric rise, by historical standards, of the home market in the DFW metroplex has been the lack of inventory. Today’s limited supply of houses for sale continues to keep sellers in the driver’s seat – what we call as ‘Seller’s Market.’ According to information published in a January 12, 2022, article by Norada®, they stated that:
- New listings increased by 1.22% Year-over-Year;
- Months inventory for single-family homes even further declined from 1.3 to 1.0 months supply; and
- Days to sell, or Days On Market, declined from an average of 72 to 62.
Meanwhile, the median home prices in the DFW metroplex market has continued to rise at the amazing rate of 18.08% Year-over-Year and is projected by Realtor.com, Zillow, National Association of Realtors and others to continue at this pace well into 2022.
More buyers in the market eagerly waiting for your house means we can expect to continue to see competing offers – but this will not last forever! We have all seen in the past the ‘pendulum’ eventually swing back and even a little swing can affect your goals.
In fact, we’ve already begun to see the number of multiple offers diminish slightly and experts project more inventory will come to the market as we move through the winter months and into the spring and summer. Why wait for this to turn and the momentum you have now as a Seller to diminish?
Selling now may help you maximize the return on your investment before your house has to face more competition from other sellers.
2. Your Equity Is Growing in Record Amounts
Current homeowners are sitting on record amounts of equity thanks to today’s home price appreciation. According to the latest report from CoreLogic, the average homeowner gained $56,700 in equity attributed solely to market value increase over the past 12 months.
That much equity can open doors for you to make a move. If you’ve been holding off on selling because you’re worried about how rising prices will impact your own home search, rest assured your equity can help fuel your next move. It may be just what you need to cover a large portion – if not all – of the down payment on your next purchase.
Honestly, selling your home is only half of the equation, isn’t it? After all, if you must sell your current home in order to buy the next home in a FAST market that is hard to do without a lot of capital, right? Not necessarily! By the way, the answer is NOT a contingent offer – these are seldom accepted in a FAST seller’s market. We have some solutions for you, so if you’re interested in maximizing your gains give Geni Manning a call at 469-556-1185 for a no cost, no obligation consultation.
3. Mortgage Rates Are Still Low - Though Starting To Rise
In January of last year, mortgage rates hit the lowest point ever recorded. Today, rates are starting to rise, but that doesn’t mean you’ve missed out on locking in a low rate. In fact, the interest rates on a 30-year fixed rate mortgage have risen, on average, by 65 basis points, from 3.2% to 3.85% since the first of the year already exceeding the forecast of 3.4% by the end of 2022! Refer to our last blog for a discussion of interest rates and the forecast of where they are going.
Experts project that rates will continue to rise throughout this year, and when they do, it’ll not only cost you more out-of-pocket to purchase your next home, but your monthly payment will be increased accordingly. Waiting simply translates to higher cost to you.
4. Home Prices Are Going To Keep Rising
According to industry leaders, home prices will continue appreciating this year with the DFW metroplex holding at around 18% through 2022. This is good as a seller, but as a buyer you’re still chasing the increasing market value of your new home.
Sure, your home is appreciating as well; however, do the math – if your current home has a market value of $500,000 the forecast appreciation of 18% will mean it will have gained a market value increase of $90,000. Great, right?
Well, just wait a minute because if the home you want to buy is $800,000 then that home could appreciate by an average of 18% or by $144,000 making your down payment larger, monthly payment larger and perhaps even knocking you out of qualifying if you are borderline because qualification requirements are also expected to tighten.
So, if you’re selling so you can move into a bigger home, to the home of your dreams, you should really consider moving now before rates and prices rise further. If you’re ready, you have an opportunity to get ahead of the curve by purchasing your next home before rates and prices climb higher.
Bottom Line
If you’re considering selling to move up or downsize, this may be your moment, especially with today’s low mortgage rates and limited inventory. We are here at the Geni Manning Group to answer your questions and help you to sell your home for top dollar and to find the home of your dreams – even in a tight inventory market.
Just ask us how! Call Geni Manning at 469-556-1185 or email her at RealEstate@GeniManning.com. The clock is ticking and as you just read time may NOT be in your favor!
Remember, a good Realtor will know more about the target market for your home than you do. For more wisdom and guidance click the following link to get a FREE copy of Geni’s new book ‘INSIDER SECRETS That Get You Home Sold For Top Dollar!’.
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