Don't Let These Market Factors Keep You From Selling Your Omaha Home

The real estate market in Omaha and around the country is crazy, to say the least. There are many different factors as to what is keeping the real estate market in an interesting state. One of the biggest factors besides mortgage rates is the low inventory of homes. Some real estate experts believe that it is highly due to the reluctance of homeowners to list their homes for sale.

Omaha homeowners that would have otherwise considered selling their home may be reluctant to sell their home for two key reasons, having to take on a new mortgage rate much higher than the one they are currently holding, and having to become an Omaha homebuyer when the inventory of homes remains low. 

But Omaha buyers that truly need to move to a new Omaha home that better meets their needs (and may some of their wants) don't have to let these challenges defer them from listing their home for sale. There are some ways to combat current home selling and buying issues. 

Battling Taking on a Higher Mortgage Rate After Selling Your Home

Data from the Federal Housing Finance Agency also referred to as the FHFA shows that the average mortgage interest rate held by current homeowners across the country is less than 4%. The most recent data show that about 44.7% of homeowners in the country have a mortgage interest rate somewhere between 3 and 4%. Another 26% of homeowners have a mortgage interest rate below 3 percent. About 20.3 percent of homeowners are paying between 4 and 5%. This adds up to 90 percent of homeowners. with a mortgage below 5%. 

Right now the current 30-year fixed rate mortgage interest rate hovers just under 7%. This would mean double the interest rates for a large number of current homeowners if they choose to sell their home and mortgage a new one. This has been given the name of the mortgage rate lock-in effect. 

While it may seem like a better idea to stick with a much lower mortgage rate on a home instead of selling and trading for twice the interest, it might not be the best home-buying strategy to wait. No one can predict where mortgage rates are heading and even though they have been forecasted to decrease the decrease will be very slight for the next few years. This may not save a homebuyer any money as home prices will be higher. 

As home prices are increasing currently it would be more beneficial for an Omaha homeowner to take advantage of getting every bit of equity (profit) from their home as possible. A homeowner can take this larger profit and put it into the purchase of their next home and get the best interest rate possible while owing the bank less money than they would by purchasing a home with less equity from a sale. 

Battling A Low Inventory of Homes for Sale

Selling your Omaha home means that you will then need to find a new home to live in. Looking at the number of homes for sale this can be challenging and could even put you into competition with other buyers which could lead to a possible bidding war. This has also kept current homebuyers from listing their home for sale. Many real estate experts are forecasting that inventory will remain low over the next couple of years which means continued challenges for home buying.

If you are willing to be patient there is a home out there for you in Omaha that will come up for sale. The main thing to focus on is having the right professional help at your side willing to look at every available listing within your search parameters to help you find the Omaha home that you will love. You may even consider opening up your search parameters to new areas of Omaha that you did not know existed as you discuss what you were looking for with your agent. It may be challenging but your Omaha diamond in the rough is out there.

With the right buying strategy and the best expert advice on your side homebuying in this challenging time can still be successful after you have sold your Omaha home for the highest profit possible.

For more information on what it could look like to sell your Omaha home and find one that better suits your wants and needs contact me anytime.