MAKING A MOVE Considering More Than Just Mortgage Rates

If you're contemplating selling your house in the current Australian real estate market, it's likely because something significant has occurred in your life. While factors like mortgage rates are undeniably essential in determining your next purchase, it's crucial not to lose sight of the underlying reason driving your desire for change.

While it's true that mortgage rates have risen from the record lows we witnessed in recent years, impacting affordability, it's important to prioritize your evolving lifestyle and changing needs.

As Danielle Hale, Chief Economist at Realtor.com, explains:

". . . homeowners who locked in a 30-year fixed rate in the 2-3% range don't necessarily want to give that up in exchange for a rate in the 6-7% range."

Here are a few of the most common reasons people choose to sell their homes today. Remember, any of these factors may outweigh the importance of keeping your current mortgage rate.

Ali Wolf, Chief Economist at Zonda, highlights in a recent tweet:

“First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced.”

	Relocation: Motivations for moving to a new area include changing jobs, a desire to be closer to friends and loved ones, seeking a dream location, or simply longing for a change in scenery. For example, if you currently reside in a suburban area and have recently landed your dream job in Sydney, you might be considering selling your current home to move closer to work.
	Upgrading: Many homeowners decide to sell in order to move into a larger property. This is especially common when there's a need for more space to entertain, a dedicated home office or gym, or additional bedrooms to accommodate a growing family. For instance, if you currently live in a condo and feel the need for more space, or if your household is expanding, it may be time to find a home that better suits your needs.
	Downsizing: With inflation driving up everyday expenses, homeowners may choose to sell their homes to reduce maintenance and costs. It could also be due to a recent change in occupancy, leaving more space than necessary. Additionally, the decision to sell may stem from recent retirement or a desire for a change in lifestyle. For example, if you've recently entered retirement and wish to move to a location with a warmer climate and a smaller home that requires less maintenance, it's time to explore homes that align better with your new lifestyle.
	Change in Relationship Status: Divorce, separation, or marriage often lead individuals to sell their current homes and seek different living arrangements. For example, if you've recently separated, continuing to live under the same roof may be challenging, making selling and downsizing more suitable options.
	Health Concerns: Homeowners facing mobility challenges or health issues that require specific living arrangements or modifications may choose to sell their current homes in search of a better-suited environment. For instance, selling your home and using the proceeds to secure a unit in an assisted-living facility can provide an improved living situation.

While higher mortgage rates present affordability challenges at the moment, it's crucial to remember that your needs and lifestyle matter too. As a recent article from Bankrate emphasizes:

"Deciding whether it's the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . ."

In conclusion, if you're ready to sell your house and make a move, it's highly recommended to take proactive steps towards achieving the best outcome, regardless of your circumstances. Contact SID GANDHI today to discuss your plans and let us guide you through the process with expert advice and support. Preparation is key, and we're here to help you every step of the way.