Sellers: Don’t Let These Two Things Hold You Back

As an experienced Realtor® in the Colorado Springs area, I know many homeowners that are thinking about selling have two key things holding them back: Feeling locked in by today’s higher mortgage rates and worrying they won’t be able to find something to buy while supply is so low. Let’s dive into each challenge and give you some helpful advice on how to overcome these obstacles.

Challenge #1: The Hesitation To Take On a Higher Mortgage Rate

According to the Federal Housing Finance Agency (FHFA), the average mortgage interest rate for current homeowners is below 4%. However, the present-day 30-year fixed mortgage rate for buyers is edging closer to 7%. Understandably, this 'mortgage rate lock-in effect' can make homeowners cautious about upgrading to a pricier mortgage.

Advice: Waiting May Not Pay Off

While forecasts suggest a potential drop in mortgage rates as inflation calms, predicting these rates is as tricky as predicting Colorado weather. Furthermore, home prices are steadily climbing. If you choose to sell now, you stand to stay ahead of rising home prices when purchasing your next home. And if the forecasts are accurate and rates drop, refinancing is always an option.

Challenge #2: The Fear of Not Finding Something to Buy

When a majority of homeowners are reluctant to face higher rates, the number of homes hitting the market takes a dip, resulting in low inventory. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), puts it:

“Inventory will remain tight in the coming months and even for the next couple of years. Some homeowners are unwilling to trade up or trade down after locking in historically low mortgage rates in recent years.”

While this scarcity may increase the attractiveness of your home to prospective buyers, it might also stoke your fears about finding your next dream home.

Advice: Broaden Your Search

If the fear of not finding your next home is holding you back, remember to explore all your possibilities. Considering various housing types such as condos, townhouses, and new constructions can widen your pool of choices. Additionally, if remote or hybrid work is an option for you, looking at homes further from your workplace might open up more affordable options.

In Summary :

Instead of feeling overwhelmed by these hurdles, let's focus on the elements within our control. Reach out to me and let's navigate these waters together. With over 20 years of experience in varying markets, I'll ensure we find that perfect home for you. 719-434-7525

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