February 2024, You may need to make a move
This months market update is what you need to know about today's housing market, if
you're thinking of buying or selling a home this year.
There are several factors that go into deciding when to make a move.
Space- you need more or you need less, Work - you're tired of your long commute or you're
sick of running into your coworkers at the grocery store. You've may have experienced a
major life change and have more kids or less kids living at home. Maybe your financial
situation has changed. Maybe your kids need a new school district. You may have family
obligations that require a move. And sometimes it's just because it's the right time.
There may be other factors spurring the interest in a move but high interest rates and
affordability are putting a damper on people who want to make a change and particularly
on first time home buyers.
Here are some things to keep in mind if you are considering making a move.
For first time buyers, it's just time to stop paying rent. Wealth is often built through real
estate. Because of affordability, your first home may not be your dream home. But waiting
to start building your own equity and having control of your own environment will almost
always cost you more. Many first time buyers make assumptions about their ability to
qualify for a mortgage. Don't assume! Talk to a lender and get certainty. You may be
surprised. Call me and I can make a referral.
For current homeowners who need to make that move, it can be tough when you currently
have a 3 or 4% mortgage - or less. You may be able to buy that bigger/smaller/closer to
work or family home and keep your existing house and turn it into a rental.
And, if you've owned your home for more than four years, you probably have a large amount
of equity. Many sellers have a large amount of equity and in the last month, sellers in over
44% of all sales in the valley have helped the buyer with closing cost - and that money can
be used to buy down the interest rate, making a move more affordable.
Lastly, when we look at the ratio of homes for sale vs homes in escrow, we see about a two
to one ratio, meaning it's a nice, warm market - buyers have many homes to choose from
with less competition than usual. And sellers have buyers looking in all price points.
Don't let interest rates lock you in to a home you've outgrown. Let's talk and create a plan
for your next move.