If you've been dreaming of more space or a home that matches your lifestyle, there’s no better time to consider an upgrade. According to recent surveys, a key motivation for many homebuyers right now is the need for extra room and a desire to enhance their living environment. But with market changes, you may be wondering if it’s really the right time to make a move. Here’s why the current market conditions may actually be working in your favor.

1. Boosted Equity Means Better Buying Power

For homeowners who’ve held onto their properties over the last few years, rising home values have likely led to a major boost in equity. This increased equity can be a powerful tool when upgrading to a larger or higher-end home. Selma Hepp, Chief Economist at CoreLogic, recently highlighted that:

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

If you've built up a significant amount of equity, you have the potential to make a larger down payment on your next property, which can reduce the mortgage amount and lower monthly payments. To get a clear picture of how much equity you’ve accumulated, a professional home equity assessment through a knowledgeable real estate agent is a valuable first step.

2. Falling Mortgage Rates Can Expand Your Options

Mortgage rates have been easing lately, offering a window of opportunity for buyers looking to secure more favorable financing. A lower interest rate not only makes monthly payments more affordable but can also increase the loan amount you qualify for—opening doors to homes that may have previously been out of reach. According to Nadia Evangelou, Senior Economist at the National Association of Realtors:

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

Whether you’re eyeing a bigger yard, an additional bedroom, or a luxury upgrade, a trusted lender can walk you through rate options tailored to your budget, ensuring you’re getting the best financing for your dream home.

Bottom Line

For current homeowners ready to make a move, today’s market may offer just the right conditions. With robust equity and the potential for favorable mortgage rates, upgrading your home is within reach.

Thinking of making a change? Reach out to a real estate professional who can guide you through the process, from understanding your equity to finding the perfect home to match your aspirations. Don’t wait—your dream home may be closer than you think!

FAQs

Q: What is home equity, and how does it help with upgrading my home?

A: Home equity is the amount of your home’s value that you truly own, built up over time as you pay down your mortgage and as property values rise. This equity can serve as a powerful asset when upgrading, as it can be applied toward the down payment on your next home, potentially lowering the mortgage amount you’ll need.

Q: How do mortgage rates affect my ability to buy a new home?

A: Lower mortgage rates decrease the interest portion of monthly payments, making them more affordable. This increased affordability can also raise your purchasing power, opening up the possibility to consider higher-value properties.

Q: What is a professional equity assessment, and why should I get one?

A: A professional equity assessment is a detailed evaluation of your home’s current market value to determine the equity you’ve built up. This assessment, typically done by a real estate agent, helps clarify how much you could put toward a new home, making it an essential step in planning your upgrade.