If moving into a larger, more comfortable home has been on your mind, you’re not alone. A recent Inman survey shows that many homebuyers today are motivated by a desire for more space or a significant upgrade (see graph below).

For many, however, market conditions have made the timing tricky. Considering an upgrade that could increase monthly housing costs requires careful consideration of affordability. But here’s the encouraging news: now may be one of the best times to move up. Let’s look at why this market is especially favorable for those aiming to upgrade.

You Have Significant Equity to Leverage

One of the strongest advantages homeowners have today is the considerable equity they’ve likely built up over recent years. Despite shifts in the housing market, home prices nationwide have generally trended upward, building equity for homeowners along the way. According to Selma Hepp, Chief Economist at CoreLogic:

“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”

If you’ve been in your current home for a while, you’re likely sitting on a substantial amount of equity. You can use that equity as a sizeable down payment on your next home, keeping your borrowing amount manageable and making your dream of upgrading even more achievable. Curious about how much equity you’ve built? A professional equity assessment from a real estate agent can give you an accurate picture.

Falling Mortgage Rates Increase Your Buying Power

There’s another compelling reason to consider upgrading now: mortgage rates are trending down. Lower rates mean potentially lower monthly payments, making a larger mortgage more affordable. They also increase your purchasing power, potentially allowing you to consider homes at a higher price point than you could with previous rates. Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains it well:

“When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to . . . qualify for mortgages that may have been unaffordable at higher rates.”

Working with a trusted lender can help you explore how current rates can work to your advantage, so you’re well-prepared when you’re ready to make your move.

Bottom Line

If you’re eager to sell your current home and upgrade to the space and lifestyle you’ve envisioned, there’s no need to wait. With high equity and lower mortgage rates, you’re in a prime position to make this dream a reality. Let’s connect to plan your next steps and navigate the buying process so you can achieve your goals confidently and effectively.