Many homeowners considering selling their homes often find themselves held back by two significant concerns. The first is the fear of feeling locked in by today's higher mortgage rates, and the second is the worry of not being able to find a suitable property to buy due to the limited housing supply. In this blog, we'll address these challenges and provide helpful advice on how to tackle them head-on.

Challenge #1: The Reluctance to Take on a Higher Mortgage Rate One major obstacle homeowners face is the hesitancy to move to a new home with higher borrowing costs, especially when the typical 30-year fixed mortgage rate for buyers is around 7%. This situation, known as the mortgage rate lock-in effect, often leads homeowners to stay put and forego selling their homes.

The Advice: Consider Your Options While experts anticipate a gradual decrease in mortgage rates as inflation cools, waiting may not necessarily be the best strategy. Predicting mortgage rate movements is notoriously difficult, and currently, home prices are on the rise again. By selling now, you can avoid the risk of higher home prices when you're ready to buy your next property. Moreover, if rates do fall as predicted, you can always explore refinancing options later.

Challenge #2: The Fear of Not Finding Something to Buy The low inventory resulting from homeowners' reluctance to take on higher rates often makes sellers concerned about finding a suitable property for themselves. Limited housing supply can create a sense of uncertainty about the availability of desirable homes.

The Advice: Explore All Possibilities To overcome this fear, it's essential to broaden your search and consider all housing types, including condos, townhouses, and newly built homes. Exploring a wider range of options can increase your chances of finding a property that meets your needs and preferences. Additionally, if your work situation allows for remote or hybrid work, you can consider areas you hadn't previously explored, potentially uncovering more affordable housing options.

Bottom Line

Instead of allowing these challenges to hold you back, focus on what you can control. Partnering with a professional experienced in navigating the current housing market can provide valuable guidance and ensure you find the perfect home that aligns with your goals. If you're ready to take the next step, let's connect and make your selling journey a successful and fulfilling one.