Frequently Asked Questions About Selling Your Home

There's no denying that mortgage rates are having a big impact on today's housing market. If you're considering selling your home, you might be wondering if it still makes sense to make a move. Here are three of the top questions you may be asking – along with the data to help answer them.

1. Should I Wait to Sell?

If you’re thinking about waiting to sell until mortgage rates come down, here's what you need to know: so are many others.

While mortgage rates are forecasted to decrease later this year, waiting could mean facing more competition as other buyers and sellers re-enter the market. As Bright MLS notes:

“Even a modest drop in rates will bring both more buyers and more sellers into the market.”

This means waiting might result in higher prices and more multiple-offer scenarios when you buy your next home.

2. Are Buyers Still Out There?

Despite some people holding off, there are still plenty of active buyers today. Here's the data to prove it.

The ShowingTime Showing Index measures how frequently buyers are touring homes. The graph below shows buyer activity for March (the latest data available) over the past seven years:

Demand has dipped since the 'unicorn' years (shown in pink) due to higher mortgage rates, rising prices, and limited inventory. However, comparing today’s demand to the last normal years in the market (2018-2019) – not the abnormal 'unicorn' years – reveals a different story.

Focusing on the blue bars shows how 2024 stacks up. Nationally, demand remains high compared to the last normal years in the housing market, indicating there's still a market for your home.

3. Can I Afford to Buy My Next Home?

If you're worried about affording your next move with today’s rates and prices, consider this: you likely have more equity in your current home than you realize.

Homeowners have gained record amounts of equity over the past few years. This equity can significantly impact your ability to buy your next home. You might even have enough to be an all-cash buyer, avoiding the need for a mortgage altogether. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“Those who have earned housing equity through home price appreciation are the current winners in today’s housing market. One-third of recent home buyers did not finance their home purchase last month—the highest share in a decade. For these buyers, interest rates may be less influential in their purchase decisions.”

Bottom Line

If these questions have been holding you back from selling, hopefully, this information helps. A recent survey from Realtor.com found that over 85% of potential sellers have been considering selling for over a year, indicating many sellers are on the fence.

However, 79% of recent sellers who decided to list their homes wish they’d sold sooner. 

If you want to discuss these questions further or need more information, contact the Rucker and Associates team.