When considering selling your home, most likely there's been a change in your life circumstances. Even though factors like mortgage rates do hold substantial importance in the decision of your next investment, it's crucial to stay focused on the primary motivation for your relocation.
Indeed, mortgage rates have seen an uptick from the all-time lows experienced in previous years, causing a ripple effect on property affordability. Current rates have led some homeowners to delay their selling ambitions, hoping to dodge a higher mortgage rate on their next property. Realtor.com's Chief Economist, Danielle Hale, shares this perspective:
"Those homeowners who secured a 30-year fixed rate around 2-3% might hesitate to surrender it for a 6-7% rate."
However, factors like changing lifestyles and evolving personal needs should occupy the front seat. Here are several typical reasons homeowners are prompted to sell their homes. Any of these motivations could be more compelling than retaining your current mortgage rate.
In the words of Ali Wolf, Zonda's Chief Economist, as stated in a recent tweet:
"Both first-time homebuyers and those looking to upgrade are active... the latter motivated by significant life changes. Factors such as divorce, marriage, landing a high-paying job, and the current home no longer being suitable were cited."
Relocation
Changing jobs, the desire to be closer to friends and family, aspiring to live in a dream location, or simply the wish for a new environment can often trigger the decision to relocate.
For example, if you currently live in the suburbs but just scored your dream job in NYC, you may be contemplating selling your property and moving to the city.
Upgrading
A sizeable fraction of homeowners decide to sell their current property to upgrade to a larger home. This trend is particularly common among those who need extra room for hosting, a dedicated home office or gym, or additional bedrooms to accommodate a growing family.
For instance, if you're residing in a condo and it's time for a more spacious place, or if your family size is on the rise, you might need a home that caters better to your evolving requirements.
Downsizing
With inflation driving up everyday expenses, homeowners might choose to sell their property to minimize maintenance and costs. Additionally, they might sell if the home feels too spacious after a recent move-out, or if they've recently retired or are looking for a change.
If you've just commenced your retirement and desire to relocate to a warm climate with less house to upkeep, your new lifestyle might be a perfect fit for a different property.
Change in Relationship Status
Changes in relationship status, including divorce, separation, or marriage, are frequent reasons individuals decide to sell their properties to buy different ones.
If you've recently gone through a breakup, continuing to live under the same roof might be challenging, and selling with an aim to downsize could be a more suitable solution.
Health Concerns
For homeowners experiencing mobility difficulties or health concerns necessitating particular living conditions or alterations, selling their current property to find a better-suited one might be the best option.
For instance, selling your home and using the proceeds to finance a unit in an assisted living facility could be a strategic move.
Higher mortgage rates might be posing an affordability challenge currently, but remember that your lifestyle and personal needs are equally important. As a recent Bankrate article suggests:
"Determining when to sell your home is a deeply personal decision. Both financial and lifestyle factors need to be weighed up before putting your home on the market... Your future plans and aspirations should significantly influence your decision."
Bottom Line
If you're geared up to sell your house and make a move, partnering with a real estate professional can make the journey smoother. They can help you navigate the process and assist in finding a home that matches your needs.