I was reading an article lately that was pretty inspiring. It concerns a recent study conducted on behalf of Bank of America regarding millennial homeowners’ attitudes toward homeownership. You can read it right here. One of the study’s big findings is the fact that a majority of young homeowners are looking to upgrade. They (rightly) view their current home as an asset that they will eventually sell, with the money going towards the purchase of another home. This process of upgrading is important, as families grow in size, work commutes change, etc., and one’s living situation must adapt accordingly. There’s a reason they’re called “starter homes” and not “forever homes,” after all.
As it happens, this is a great time to act on the desire for a home upgrade. Mortgage rates are phenomenally low right now, which is a situation that cannot last forever. Eventually, they will tick back up, and many experts predict a significant rise over the course of this year. For now, though, mortgages are the most affordable and buyer-friendly that they’ve been in a while. Anyone who has been considering a real estate purchase would be wise to consider this. This most certainly includes anyone looking to upgrade their home.
Think of it this way: property values are very, very high right now. Inventory is still quite low, and demand for Bay Area homes is red hot. For first-time homebuyers, this presents quite a challenge, as I have mentioned before. But for people who already own a home-starter or otherwise-the combination of this seller’s market and the current low mortgages rates presents a great opportunity to upgrade. If a homeowner puts their house on the market now, sells it, and puts that capital towards the purchase of a new home with low monthly payments, they are extracting maximum value from their home. If they delay too long, it may be quite a while before a similar situation presents itself.
Obviously there are a great number of factors and considerations that go into purchasing a home. It’s one of the most complex and difficult decisions a person can make (which is why having a good real estate agent is so important!). But sometimes the key to progress is recognizing an opportunity and taking advantage of it, even if it seems a bit inconvenient. If you are a homeowner like the ones mentioned in the study, perhaps your plans for upgrading are focused on the distant future. Perhaps that truly is the best option at this point in time. But it’s also worth evaluating whether speeding that timeline up a bit might be the most beneficial option for you. Even if it creates a bit of financial discomfort for you now, the long-term savings and the ability to live in your dream home sooner than you thought might be worth it. Upgrading your home is not a decision to take lightly…but it’s certainly one to consider.
If you or anyone you know would like more information on upgrading their home, or forming a specific plan for turning their current home into one better suited for their needs, please contact me! I am always happy to help anyone acquire the home that is right for them, now and in the future.