The Top Reasons for Selling Your House - Thursday, February 9, 2023
Ian Walterhouse
Thursday, February 9, 2023
The Top Reasons for Selling Your House
Many of today’s homeowners bought or refinanced their homes during the pandemic when mortgage rates were at history-making lows. Since rates doubled in 2022, some of those homeowners put their plans to move on hold, not wanting to lose the low mortgage rate they have on their current house. And while today’s rates have started coming down from last year’s peak, they’re still higher than they were a couple of years ago.
About 50 per cent of variable-rate, fixed-payment mortgages and nearly 13 percent of the entire Canadian mortgage pool have already hit their “trigger rates,” or the point where monthly mortgage payments are only covering interest and not making headway on the principal.
That means a strong majority of homeowners with mortgages have a rate below what they’d get if they moved right now. But if you’re a homeowner in that position, remember that mortgage rates aren’t the only thing to consider when making a move. Your mortgage rate is important, but there are plenty of reasons you may still need or want to move.
"People really don't want to list their homes when sales and prices are falling, for obvious reasons, and so far, that factor is sort of winning out and keeping supply relatively subdued," said Rishi Sondhi, TD Economics.
Sondhi goes on to say that forecast prices in Ontario will decline through early 2023 but bottom out in the second half of the year.
So, if you’re on the fence about selling your house, consider the other reasons homeowners are choosing to make a move. A recent report from the National Association of Realtors (NAR) breaks down why homeowners in the US have decided to sell over the past year. We don’t have the same incredible data available in Canada, and it is safe to say from our perspective that many of the reasons are the same north of the border too.
As the visual shows, the most commonly cited reasons for selling were the desire to move closer to loved ones, followed by moving due to retirement, and their neighborhood becoming less desirable. Additionally, the need for more space factored in, as did a change in household structure. If you also find yourself wanting a change in location or needing space your current house just can’t provide, it may be time to sell.
What you want and need in a home can be reason enough to move. To find out what’s right for you, work with a trusted real estate professional who will offer advice and expert guidance throughout the process. They’ll be able to lay out all your options – giving you what you need to make a confident decision.
Bottom Line
When deciding whether or not to move, you have a lot to consider. There are plenty of non-financial reasons to factor in. Let’s connect today to weigh the benefits of selling your house.
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