Page 8 - SellerGuide

Why Sell?
Much has changed over the last few years. From the development of a global pandemic, to the new normal of virtual work and doing many more things online. From an economic standpoint, as mentioned in the previous section on the state of the market, home values are still at record levels and with that,
record levels of equity for many homeowners.This leads many people to wonder, “Is now a good time to sell my home?” The answer, as you might expect, depends. We don’t ever encourage our clients to attempt to time the market because there are many risks associated with doing that. Instead, we encourage our clients to focus on the basics. What has changed in your life? Do you want to relocate? Does your current home meet all of your needs? Do you desire a change in lifestyle? In other words, the fundamental reasons for choosing to sell you home haven’t really changed. What has changed however, is that with record levels of equity from the rapid price appreciation over the last few years, move up buying to something ordinarily considered out of reach or further down the road, might now be possible. On top of that, despire recent increases in mortgage rates, rates are still at historically low levels, making borrowing for your next purchase relatively cheap.
Low Fixed Interest Rates
By the end of the first quarter of 2022, the national average for a 30 year fixed mortgage rate hovered between 4.5% to 5%. While this represents an increase in the national average in the short term, a broader perspective reveals how this is still very low, historically speaking. As a result, some homeowners may still feel compelled to sell their current home now, while the cost of borrowing is still low, and buy a newer home that better fits their needs, particularly if they already planned on doing so at some point in the future.
National Avg. 30-Year Fixed Mortgage Rates
18% 16% 14% 12% 10% 8% 6% 4% 2%
1991 2001 2011 2021
Freddie Mac, 30-Year Fixed Rate Mortgage Average in the United States [MORTGAGE30US], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/MORTGAGE30US, April 3, 2022.
1971 1981
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