Boston condo sellers: The two main deterrents
Boston Condos for Sale & Boston Apartments
Boston condo sellers: The two main deterrents
Many people who are evaluating if they should put their property up for sale have two main deterrents. These include feeling restrained by the current higher mortgage interest rates and being concerned that they will not be able to buy a different house since the supply is low. Let’s examine every problem and provide you with valuable tips on how to surmount these difficulties.
Obstacle #1: Hesitancy to Incur a Higher Mortgage Rate
The FHFA reports that the average mortgage interest rate for existing homeowners currently stands at under 4% (as illustrated in the graph below):
Presently, the common 30-year fixed loan amount provided to buyers is close to 7%. Therefore, many homeowners are deciding not to relocate to another dwelling with an increased borrowing expense. This is referred to as the secured home loan interest rate phenomenon.
The Suggestion: Delay May Not Prove Worthwhile
Although specialists forecast that interest rates for mortgages will reduce gradually as inflation moderates, this does not automatically mean you should postpone putting your house up for sale. Trying to foresee future mortgage rates can be challenging. Presently, housing prices are increasing again. Taking action now will help to avoid a higher expense when buying your subsequent home. If specialists are accurate and interest rates decrease, it is possible to refinance afterwards in the event of such an occurrence.
Obstacle #2: Hesitancy to Acquire at a Soaring Cost Leading to Limited Offerings
Due to the apprehension of numerous homeowners to accept an increased rate, there will be a decrease in homes for sale, thus keeping supply minimal. Lawrence Yun, the Chief Economist of the National Association of Realtors, elucidates:
Stocks of properties will stay scarce in the near future and for the upcoming few years. Certain house owners are not eager to upgrade or downgrade their dwellings after securing historically reduced home loan rates in the recent past.
Despite the recognition that a dwindling number of homes on the market could more readily attract buyers, you might be reluctant to list your house out of fear of difficulty in finding a property to purchase yourself.
The Suggestion: Expand Your Exploration
If your trepidation about where you will live next is obstructing you, be sure to weigh all of your possibilities. Analyzing all kinds of dwellings such as apartments, townhouses, and even new houses can give you a greater range of options. Furthermore, if you’re able to do all your work remotely or combine remote and in-person work, you will have access to more housing opportunities that were not previously available. Considering other regions farther away from your workplace could mean a more affordable cost of living.
The main takeaway
Rather than dwelling on the difficulties, concentrate on what you can manage. Reach out to us so that we can work together and you can have the knowledge of an expert to traverse this situation and discover an ideal home for you.
