The Newcomer Group Has the Answers You’re Looking For
There’s no denying mortgage rates are having a big impact on today’s housing market. While rates are coming down from their peak at the end of 2023 and beginning of 2024, chances are your current mortgage rate is still lower. And that may leave you with some questions about whether it still makes sense to sell your house and make a move.
Here are three of the top questions you may be asking – and the data that helps answer them.
1. Should I Wait To Sell?
If you’re thinking about waiting to sell until after mortgage rates come down, here’s what you need to know: so are a ton of other people.
Especially in a destination market like St. Augustine, there are always people looking to purchase a home. St. Johns County is popular with everyone from young families looking to get into Florida’s number one school district to retirees looking for a home base for their third act.
And while mortgage rates are still forecasted to come down later this year, it might not be in your best interest to wait. First, you can refinance a home loan, so you are not necessarily locked in at one specific rate. Second, if you wait for mortgage rates to come down, you will definitely be dealing with a lot more competition from other buyers and sellers. Thanks to its geography, St. Augustine is not an area where there will constantly be new construction. The amount of homes is as close to finite as possible.
That means if you hold back, you’ll have to deal with things like prices rising faster and more multiple-offer scenarios when you buy your next home.
2. Are Buyers Still Out There?
All that being said—people are still moving. People have life changes that can’t wait for a different mortgage rate and some people have enough capital that they are less concerned with specific rates.
There are plenty of active buyers and here’s the data to prove it.
The ShowingTime Showing Index is a measure of how frequently buyers are touring homes. The graph below uses that index to show buyer activity for March (the latest data available) over the past seven years:
You can see demand has dipped some since the ‘unicorn years’ (shown in pink). That’s in response to a lot of market factors, like higher mortgage rates, rising prices, and limited inventory. But, to really understand today’s demand, you have to compare where we are now with the last normal years in the market (2018-2019) – not the abnormal ‘unicorn’ years.
When you focus on just the blue bars, you can get an idea of how 2024 stacks up. And that gives you a whole new perspective.
Nationally, demand is still high compared to last normal years in the housing market (2018-2019). And that means there’s still a market for your house to sell.
3. Can I Afford To Buy My Next Home?
And if you’re worried about how you’ll afford your next move with today’s rates and prices, consider this: you probably have more equity in your current home than you realize.
Homeowners have gained record amounts of equity over the past few years. At The Newcomer Group, we have facilitated multiple transactions where home equity has increased by six figures in under two years. And that equity can make a big difference when you buy your next home. You may even have enough to be an all-cash buyer and avoid taking out a mortgage altogether. As 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.”
What’s the Move?
If you’ve had these three questions on your mind and they’ve been holding you back from selling, hopefully, it helps to have this information now. A recent survey from Realtor.com shows more than 85% of potential sellers have been considering selling for over a year. That means there are a number of sellers like you who are on the fence.
But that same survey also talked to sellers who recently decided to take the plunge and list. And 79% of those recent sellers wish they’d sold sooner.
Welcome Home to St. Augustine
Whether you’ve just started thinking about life in St. Augustine, or if you’ve lived in the Ancient City your entire life, there is always something more to discover. Feel free to check out our up-to-date real estate listings or give us a call at (904) 599-5633.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. The Newcomer Group and Keeping Current Matters, Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. The Newcomer Group and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.