Mortgage rates are significantly influencing the current housing market. This situation may lead you to wonder if it is still advisable to sell your house and relocate.

Certainly, here are three of the top questions you may have, along with the data that provides the answers.

1. Should I Wait To Sell?

If you're considering delaying your home sale until mortgage rates decrease, here's some important information to keep in mind. Many others are thinking along the same lines.

It is projected that mortgage rates will decrease later this year. However, if you choose to wait for this drop, you might encounter increased competition as other buyers and sellers reenter the market. As per Bright MLS:

““Even a modest drop in rates will bring both more buyers and more sellers into the market.”
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— Bright MLS

If you wait, you might have to face rapidly increasing prices and more instances of multiple-offer situations when purchasing your next home.

2. Are Buyers Still Out There?

But that doesn't mean nobody is moving at the moment. Even though some individuals are delaying their move, there remains a significant number of active buyers today. Let's look at the data to support this.

The ShowingTime Showing Index indicates how often buyers are visiting homes. The graph below illustrates buyer activity in March, using the index data from the last seven years.

The current decrease in demand, indicated by the pink line, reflects various market influences such as increased mortgage rates, escalating prices, and restricted inventory. To get a clearer picture of today's demand, it's essential to compare the present situation with the market conditions during the last stable years (2018-2019), rather than the atypical 'unicorn' years.

When you narrow your attention to the blue bars, you can grasp a sense of where 2024 stands. This provides you with an entirely fresh viewpoint.

In the current national housing market, demand remains elevated when compared to pre-pandemic years such as 2018-2019. This indicates that there continues to be a market for selling your house.

3. Can I Afford To Buy My Next Home?

If you're concerned about how you'll manage the costs of your next move given the current rates and prices, here's something to think about: chances are, you have more equity in your existing home than you think.

Homeowners have accumulated substantial equity in recent years. This equity can significantly impact your upcoming home purchase. It might even provide you with sufficient funds to become a cash buyer and bypass the need for a mortgage entirely. According to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR):

““ . . . those who have earned housing equity through home price appreciation are the current winners in today’s housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”
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— Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR)

Bottom Line

If you've been hesitant about selling your property because of these three questions, it might be reassuring to learn this information now. According to a recent survey by Realtor.com, over 85% of potential sellers have been thinking about selling for more than a year. This suggests that there are many sellers in a similar situation as you, unsure about taking the plunge.

But in that same survey, sellers who recently took the plunge and listed their properties were also interviewed. Interestingly, 79% of these recent sellers expressed that they wish they had sold their properties sooner.

If you'd like to discuss any of these questions further or require additional information, feel free to reach out. Let's connect.