Let’s go over the pros and cons of making a move in the coming year.
Should you make a move in 2024? Let’s explore the real estate landscape and what to anticipate in the coming year.
The pivotal factor on everyone’s radar is the direction of interest rates. Will they persist at their current low levels, or are we in for an upward trajectory? The implications for the real estate market are significant. A shift from 6% to 7% rates to 8% to 9% would reshape the playing field entirely.
Currently, with rates on the lower side, prospective homebuyers can secure mortgages with payments comparable to or even below rental costs. In many cases, it makes more financial sense to invest in homeownership, especially for those planning to establish long-term roots. Why make your landlord rich when you can channel that money into your own pocket?
Now, the dilemma arises: should you make a move with your existing super-low interest rate? The key consideration is time. How long are you willing to wait for an even lower rate? The uncertainty of reaching 3% or lower is a challenge, and if the Federal Reserve intervenes to lower rates, it could have repercussions on home prices.
Equity plays a crucial role in this decision-making process. If you have substantial equity and a solid down payment for your next home, your monthly payments might not escalate as much as you fear. Additionally, if rates decrease in the future and you’re comfortably settled in your dream home, refinancing is always an option.
On the flip side, staying in your current home with low rates may not be without risks. If property values drop and you find yourself unable to make a move due to overestimated equity, you could be stuck in a less-than-ideal situation.
With over 20 years of experience in the Valley’s real estate market, I can help you navigate through these scenarios. Let’s run the numbers together and determine if now is the right time for you and your family to make a move. Call or text me at 602-738-9943. I’m eager to hear from you and assist you in making informed decisions about your real estate journey.
