Volatile interest rates, inflation, and a reset in housing probably have you wondering if it is a good move to sell or buy your home right now. Interest rates have been going up; housing prices are still at the highest they have ever been; and the media is announcing a housing crisis.
So, what now? Well, first of all, consider all the data before you listen to discouraging reports…there is a greater chance we will have a housing reset and not a housing crash. Secondly, determining whether or not it is a good time to make a move depends on your individual needs. Are you relocating? Are there health or financial reasons? Is there a life event? Or, are you simply tired of paying someone else’s mortgage?
Buyers — Yes, interest rates are higher than a few months ago. However, they will eventually go down again; and you can refinance to a lower rate. And, if the value were to go down (which is not expected any time soon); it will eventually go up again as well. If you are planning on living there long term and you can afford your mortgage payment; a change in value would not be relevant right now.
Sellers — Yes, if you sell now for a higher profit, your replacement home will also cost more than before the inflation creeped up on us. Nonetheless, consider that this is relative; and you can use the equity you gain from the sale as down payment on your new home. If you are concerned about closing and not having a replacement home, consider negotiating to stay some additional time after close of escrow.
I hope this helps to answer if it is a good time or not to make a move. It might not be the right time to purchase an investment property. However, it could be the right time to buy your home. Your story is different from your neighbors’ so what is right for you, might not be right for them and vice versa.