Upsizing or Downsizing: Make Your Move Now
If upgrading to a bigger house or downsizing to your dream home is on your 2022 to-do list, you’re probably obsessed with timing it just right to get the most out of the sale of your current house, but also make a smart investment with your next one. Actually, the time is right now.
The number of homes on the market is still low
For now, sellers are in the driver’s seat. Buyers are eagerly waiting for your house to come on the market; listing it now will make it the center of attention. Assuming you price it right, you’ll get multiple strong offers and can expect it to sell quickly. But experts believe more inventory will come on the market as we move through 2022. Selling now will help you maximize the return on your investment before you have more competition from other sellers.
Your equity has grown in record amounts
You might want to sit down for this one: The average homeowner has gained $56,700 in equity over the past 12 months. This much equity opens doors (no pun intended). If you’ve been hesitant to sell because you’re worried about high prices affecting your own home search, let your equity pave the way. It may well be enough to cover most, if not all, of the down payment on your new home.
Mortgage rates are still historically low, but they’ve been rising for six months
In January 2021, mortgage rates hit the lowest point ever recorded. Rates have been slowly rising since then, but that doesn’t mean you’ve missed out. In the 1990s, the average rate was over 8%. In the 2000s, it was about 6.25%. At just under 4%, current rates are still advantageous—but you want to take action sooner rather than later. Rates will continue rising throughout the year, and as they do, it’ll cost you more and more to make your next purchase.
Home prices will continue rising
Homes will continue to appreciate in 2022, but at a more modest pace than they have over the last 18 months. If you’re selling your current home so you can move into a bigger house or downsize to your dream home, you really want to think about it doing it now. On top of locking in a low mortgage rate and buying at today’s prices instead of tomorrow’s, you’ll also be set to enjoy some immediate appreciation on your new home.
