Is Now a Good Time to Move? Or Move Up?

By
Real Estate Agent with Smart Way America Realty AB067859

Is Now a Good Time to Move?

Is Now a Good Time to Move? | MyKCM

How long have you lived in your current home? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time to be in one place, considering the average length of time homeowners used to stay put hovered closer to 6 years.

With today’s changing homebuyer needs, especially given how the current health crisis has altered our daily lifestyles, many homeowners are reconsidering where they’re at and thinking about moving to a home with more space for their families. Here’s why it might be a great time to make that happen.

The real estate market has changed in many ways over the past 10 years, and current homeowners are earning much more equity today than they used to have. According to CoreLogic, in the first quarter of 2020 alone, the average homeowner gained approximately $9,600 in equity. If you’re considering selling your house right now, you may have accumulated more equity to put toward a move than you realize.

Dialing back 10 years, many homeowners also locked in a fairly low mortgage rate. In 2010, the average rate was only 4.09%. This motivated homeowners to stay in their houses longer than usual to keep their rate low, rather than moving. Just last Thursday, however, average mortgage rates hit a new historic low at 2.86%. Sam Khater, Chief Economist at Freddie Mac explains:

Mortgage rates have hit another record low due to a late summer slowdown in the economic recovery…These low rates have ignited robust purchase demand activity, which is up twenty-five percent from a year ago and has been growing at double digit rates for four consecutive months.”

Ten years ago, we couldn’t have imagined a mortgage rate under 3%. Looking at the math today, making a move into a new home and locking in a significantly lower rate than you have now could save you greatly on a monthly basis, and over the life of your loan (See chart below):Is Now a Good Time to Move? | MyKCMAs the example shows, you can save a substantial amount every month if you qualify for today’s low mortgage rate, and the savings can really add up over the life of a 30-year fixed-rate loan.

Bottom Line

As a homeowner, you have a huge opportunity to move up right now. Whether you want to save more each month or get more home for your money based on your family’s changing needs, it’s a great time to connect to discuss the market in our area. Buyers are actively looking for more homes to buy, and you can win big by making a move if the time is right for you.

Contact Kris Collis, your Trusted Pro in the Poconos for guidance and confidence in all market fluctuations.  If you’re ready to buy or sell – or maybe both – let’s connect to put your plans in motion. With low mortgage rates leading the way, it’s a great time to take advantage of your position today.

Posted by

Your Trusted Pro in the Poconos, Professional Results You Expect 

Kris Collis, Associate Broker

Smart Way America Realty

East Stroudsburg, PA 18301

Client Endorsements

570-801-5525

buysellpocono@gmail.com

Comments (6)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Great advice Kris, I find that as much as we give good advice sellers will decide on their own when that happens... and sadly they should have listened to us in the first place, Endre

Sep 26, 2020 10:37 PM
Kris Collis, Associate Broker

Endre Barath, Jr. Yes sadly they should have listened, and the other side of that coin....real estate is a great profession for folks who enjoy giving advice :)) because we're constantly called upon to do so   The quality of that advice of course depending on training, experience and character.  For those agents who have all 3 as we find in the Rain over and over, a whole lotta buyers and sellers are fortunately receiving the best advice for their situation.

Sep 27, 2020 08:12 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Sep 27, 2020 02:36 AM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Kris Collis, Associate Broker to answer your question, since buying and selling real estate is not like day trading, anytime is a good time to buy and/or sell.... if it's not the height of the market or the bottom of the market conditions, time will make up for the initial loss.... time heals everything in the real estate business....

I can remember selling real estate at 21% interest rates.... time healed that and people refinanced.... 

Sep 27, 2020 04:26 AM
Kris Collis, Associate Broker

So true Barbara Todaro, and today time is already healing the effects of the lockdowns.  We see it in the low interest rates and pent up demand.  I love your comparison to what real estate is not - day trading - and will credit you when I borrow that illustration. :))


 

Sep 27, 2020 08:07 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kris, excellent example of what a buyer could be paying with today's interest rates.  BIG difference, as in Denver our average home price if over $500K.

Sep 27, 2020 06:38 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

If people are ready to move or need to move for whatever reason, it seems like a great time to do so!

Sep 27, 2020 06:38 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Kris Collis, Associate Broker - this is perfect time to move up.  These rates are no so low.

Sep 30, 2020 04:06 AM