If you’ve been dreaming of selling your home and moving into a larger or more luxurious space, you’re certainly not alone. A recent survey from Inman highlights that many buyers today are motivated by the desire for more space or upgraded living conditions. But, like many others, you might be hesitant because of the challenges in the current market. It’s understandable—when considering a home upgrade that may raise your monthly costs, affordability is key. Here’s some good news: now might actually be the perfect time to take that leap. Here's why.

Leverage Your Home Equity

One of the biggest advantages you have right now is the equity you’ve built in your current home. Over time, even with market fluctuations, home prices have generally trended upward, increasing the equity for homeowners. Selma Hepp, Chief Economist at CoreLogic, puts it best:

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

For you, this could mean a significant amount of equity that can be applied toward the down payment on your next home, reducing the total amount you’ll need to borrow. It can make upgrading your home more realistic than you may have thought. Curious about how much equity you’ve gained? Reach out to your real estate agent for a professional equity assessment to get a clearer picture.

Mortgage Rates Are Dropping, Boosting Your Buying Power

There’s another fantastic reason to consider upgrading now: mortgage rates are coming down. Lower rates can significantly reduce your monthly payments, making your dream home more affordable. Nadia Evangelou, Senior Economist and Director of Real Estate Research at NAR, explains:

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

This increase in purchasing power gives you more flexibility in your home search, and might even allow you to afford a home that seemed out of reach just a few months ago. A knowledgeable lender can help you create a plan that fits comfortably within your budget.

Bottom Line

If you’ve been waiting for the right moment to upgrade to your dream home, now’s the time to act. The equity you’ve built and today’s lower mortgage rates put you in a strong position to make that move.

Reach out to your trusted real estate professional who can guide you every step of the way. We’re here to help make your dream home a reality, and there’s no better time than now to start the journey!