Is It Time To Upgrade To Your Dream Home?

If you’ve been thinking about selling your current home and moving into something bigger or upgrading to your dream home, you’re definitely not alone. Recent surveys, like one from Inman, show that the top reason buyers are looking to move is the desire for more space or an upgraded home.

But, like many others, you might have been holding off on making this move due to some of the market's recent challenges. It’s completely understandable – affordability plays a huge role when you're considering a bigger investment that might increase your monthly housing costs. The good news? Now might be the perfect time to make that move. Here’s why.

You’ve Built Up Serious Equity

One of the biggest advantages in today’s market is the equity you’ve likely built up in your current home. Homeowners today have more equity than ever. 

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 that’s nearly $129,000 more than what they had at the start of the pandemic.”

However, the average homeowner has 40-60% equity, so that number could be double for many homeowners here in Silicon Valley and South Santa Clara County. 

So, if you’ve been in your home for a while, there’s a good chance you’re sitting on a substantial amount of equity. That equity could significantly boost your down payment on your next home, making the transition to a larger or nicer home more feasible than you might think. If you're curious about how much equity you've built, reach out, and I’d be happy to help you assess it.

Mortgage Rates Are Dropping, Giving You More Buying Power

Here’s another reason now might be a great time to make a move: mortgage rates are starting to come down. Lower rates mean lower monthly payments, giving you more flexibility and boosting your buying power. As Nadia Evangelou, Senior Economist at the National Association of Realtors, explains: 

“When mortgage rates fall, the interest portion of monthly payments decreases, making it easier for more borrowers to qualify for mortgages that may have been out of reach when rates were higher.”

This could open doors to homes that were previously outside your budget. By working with a trusted lender, you can determine what fits within your financial goals.

Bottom Line

If you’ve been dreaming of moving into a bigger or more upgraded home, now is the time to take advantage of the equity in your current house and lower mortgage rates. Together, these factors make it an ideal moment to make your move.

If you want to discuss how to get started or explore your options in the current market, let’s connect. I’d be happy to guide you every step of the way!