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The Window to Sell Your Home is Still Open!

Mortgage interest rates are rising fast. As a result, many homeowners are beginning to worry that they may have missed the "window" to pull the equity out of their home by selling for higher values.


While it's a logical thought process to think that home values would decrease as interest rates climb, it isn't always true. "Historically, when mortgage rates rise by a percentage point or more, home values continue to appreciate." This trend is still accurate as of late.




For now, this trend is being motivated by supply and demand issues. Namely, housing supply is still low and the demand for homes is still high. As interest rates continue to climb, many home buyers are rushing to get homes under contract in hopes of beating the next rate increase. In many cases, there are more sellers who put their homes on the market in this type of situation. The increased inventory also creates reasons for buyers to jump back into buying. This increase in buyer demand is why we have seen home prices in Lubbock continue to increase along side interest rates.


Don't Bet On Prices Dropping


While it may feel like prices are due to drop soon, experts expect home values to keep increasing, just at a slower rate than we have recently seen. In fact, this map from an article in Fortune, shows the odds of home prices dropping in Lubbock to be “very low” or 0-10% chance. In other words, I wouldn’t gamble on prices dropping. On the contrary, we expect local prices to increase due to such low inventory levels. Lubbock has 50,000+ college students and their parents are very prone to buy sub-median priced homes for their children. This puts pressure not only on the rental market, as investors struggle to find options, but this also gives first time home buyers a run for their money.





What This Means For Buyers


If you’ve been considering selling your home, there is still a great opportunity to capitalize on the current home appreciation rates. Increasing home prices means higher value for your property. Increasing prices and increasing equity increase home equity lines of credit and refinancing and instead of listing their home, sellers decide to stay in their property. This cycle of increasing values change the landscape for buyers. We expect buyers to struggle with higher rates but more options to purchase and at higher prices.


Bottom Line


Despite climbing interest rates, now is still a great time to sell your home. Although the trends suggest that home values will continue to be high in the near future, it would be wise to sell sooner than later as we have no idea of knowing where the market will be this time next year. If you can qualify for the mortgage, then now is also a good time to purchase because there is more to choose from than the last 2 years. Lubbock, Texas has a great pool of builders who are doing everything possible to put more homes on the ground. Take advantage of real estate today.


When you are ready to see what your home is worth in today's market, schedule your free consult with one of our real estate experts here! You've probably heard the ancient proverb that the best time to plant a tree was 25 years ago. The second best time is TODAY!


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