If you’ve been watching the housing market you already know that the prices of homes are still falling in most areas. So, it may not seem like a particularly good time to sell your house and move elsewhere. However, it really comes down to where you are and where you want to move to. So, in reality, it might actually be a good time for you to trade up.
Why do most people trade up? Like anyone, people move when they start to outgrow their home or they get a new job. However, the housing market’s current status may deter many people from wanting to move. What you really need to look at is the rate of depreciation in your area compared to where you want to live.
When trading up, focus on the difference between the values of the homes you’re going to move between, not the actual prices in each area. You may also want to keep in mind that financing costs will be higher next year. The rising job market and great affordability conditions might make it easier for some people to trade up now – if they wait, they may not be able to relocate later.
So, if you think it might be time to move into a bigger and better house, trading up might not be such a bad idea right now. Just take a look at what your house is worth right now and what the price of your prospective residence is. It might just make sense!
Jon Huser
