Many clients have told me over the past couple of years they would like to move up to accommodate their growing families or to downsize now that the kids have moved on. While many have already done so, others have felt encumbered by a current home that couldn’t be sold for a price that would cover the expenses.
It turns out, there are advantages to the passage of time. Recently, the benefit for homeowners has been rising values and shrinking loan balances. Together, these factors have created new possibilities for many to sell with a surplus.
If you have considered a change, locking in a payment before interest rates and prices possibly increase may be a good long term plan. Look at how much a payment could potentially change with a 10% price increase and a 2% increase in interest rates:
This is a 27% increase to both the payment and the necessary income to qualify. That’s substantially more than the typical pay increase of maybe 3% percent or so.
The real estate market typically slows in the winter months, and that can be a great time to take action. Most participants are truly serious, and both buyers and sellers become even more motivated in the face of dwindling competition.
Whether you’ve thought about moving. remodeling or paying for college, please let me know if you have any questions. I’m here to help!