Why Now is the Perfect Time to Sell Your Home: 10 Key Insights About the Housing Market

Home Equity is Growing

Since the start of the pandemic, homeowners have seen a significant increase in home equity. The average homeowner has gained nearly $129,000 in additional equity. As of Q2 2024, the average home equity sits at about $315,000. This increase in equity provides homeowners with a financial buffer to cover higher ownership costs, such as property taxes and insurance. If you’re thinking about selling, this extra equity can help cover expenses while you move to your next home.

Certain States Lead in Equity Gains

Some areas of the country are seeing bigger gains than others. In the Northeast, for example, home equity growth has been particularly strong. Homeowners in Maine saw the largest average increase, gaining $57,500 in equity. If you’re in Florida, you’ve likely benefited from steady home price appreciation as well. This is a great time to consider listing your home and capitalizing on these gains.

Negative Equity is Declining

Nationwide, only 1.7% of homeowners have negative equity—where the mortgage exceeds the home’s value. This percentage is expected to continue dropping. A decline in negative equity means fewer foreclosures and a more stable housing market. As a homeowner, this trend is a positive signal that the market is in good shape, and selling now could be a smart financial move.

Mortgage Delinquencies are Decreasing

Mortgage delinquencies dropped to 2.8% in July 2024, which indicates that homeowners are managing their payments more effectively. Fewer delinquencies mean buyers feel confident in their finances. For sellers, this translates to a market with serious, financially stable buyers who are ready to make offers. Now could be an excellent time to attract these buyers by listing your home.

Non-QM Loans are Gaining Popularity

Non-qualified mortgage (non-QM) loans, which offer more flexibility to buyers, are increasing in popularity. These loans now make up 5% of the mortgage market, a jump from previous years. The rise in non-QM loans means more buyers can qualify for mortgages, increasing your chances of finding a buyer if you decide to sell.

Home Equity Lending is on the Rise

Home equity lending has reached its highest point since 2008. In the first half of 2024, lenders issued over 333,000 new home equity loans, totaling $23.6 billion. Many homeowners are tapping into their home’s value to cover expenses or invest. If you’re considering selling, now could be the time to use that equity to fund your next move.

HELOC Activity is Growing

Home equity lines of credit (HELOCs) have also seen an upward trend, though there was a slight dip in 2024. Since 2007, HELOC activity has been on the rise. Homeowners continue to use these lines of credit to access their home’s equity. If you’ve built up equity, selling your home now could allow you to maximize the return on your investment.

Housing Inventory is Increasing

The number of homes for sale rose by 14% year over year in August. However, new listings have slowed slightly, meaning there are fewer homes entering the market. For sellers, this creates a favorable environment with less competition and more eager buyers. Listing your home now could help you stand out and attract serious offers.

Buyer Demand is Growing

Lower mortgage rates are fueling buyer demand. In August, pending home sales increased by 12% compared to 2023, and this trend is expected to continue. The demand for homes is high, making it a great time to sell. If you’ve been thinking about selling, now is an excellent opportunity to attract multiple offers and get the best price for your property.

Refinancing Activity is Picking Up

As mortgage rates drop, homeowners with rates above 6% are refinancing at a rapid pace. Many of these homeowners may also consider moving to a new home. Increased refinance activity could bring more buyers into the market, increasing the demand for your home. If you’re ready to sell, you could benefit from this influx of potential buyers..