Have you been dreaming about upgrading to a bigger or nicer home in Brookings, South Dakota, or the surrounding area? If so, you’re definitely not alone. A recent survey by Inman highlights that many homebuyers are on the hunt for more space or better features in their next home. Whether it’s an extra bedroom, a larger kitchen, or simply a home in a more desirable neighborhood, moving up is top of mind for many homeowners today.
But maybe you’ve been holding off because of concerns about market conditions or affordability. It’s understandable—planning a move that could raise your housing costs requires careful timing. Here’s the good news: now could actually be the ideal time to make that upgrade. Here’s why you might want to consider taking the leap sooner rather than later.
You Have a Lot of Equity to Work With
One of the biggest benefits you have in today’s market is the equity you’ve likely built up in your current home. Even with the ups and downs of the real estate market, home prices have generally continued to rise, boosting the amount of equity homeowners have accumulated. This is especially true here in Brookings, where home values have steadily grown.
According to Selma Hepp, Chief Economist at CoreLogic:
“Persistent home price growth has continued to fuel home equity gains for existing homeowners who now average about $315,000 in equity and almost $129,000 more than at the onset of the pandemic.”
So, what does that mean for you? If you’ve been in your home for a few years, you’re likely sitting on a significant amount of equity. You can use that equity as a down payment on your next home, helping to keep your new mortgage within a budget-friendly range. This can make upgrading to a larger home more achievable than you might think.
If you’re not sure how much equity you’ve built, this is where partnering with a local real estate agent comes in. Your agent can provide a professional equity assessment, showing you exactly what you’ve gained and how you can use it to your advantage.
Mortgage Rates Are Falling—A Big Boost for Buyers
Another reason why now is a smart time to move is that mortgage rates are trending down. While rates spiked in recent years, they’ve started to fall, and this shift can make a huge difference in your purchasing power. Lower interest rates mean your monthly payments will be smaller, making it easier to afford a more expensive home.
As Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains:
“When mortgage rates fall, the interest portion of monthly payments decreases, which lowers the total payment. This makes it easier for more borrowers to qualify for mortgages that may have been unaffordable at higher rates.”
In simple terms, when rates are lower, you can afford more house for the same monthly payment. This added flexibility could allow you to move into that dream home you’ve been eyeing in Brookings or a nearby community like Volga or Aurora.
By working with a trusted lender, you can explore different financing options and figure out the best plan for your budget. Even if you thought an upgrade might be out of reach, the current rate environment might surprise you.
The Impact of Equity and Lower Rates Together
The combination of your equity and today’s lower rates puts you in a prime position to make your next move. The equity you've built gives you a solid foundation to put towards a down payment, reducing the amount you'll need to finance. Meanwhile, lower mortgage rates will make that financing more affordable.
It’s important to consider both of these factors together because they directly affect how much home you can afford and how manageable your monthly payments will be. With the current market conditions, upgrading to a bigger home or one in a more desirable neighborhood could be more within reach than you think.
Key Considerations for Brookings Homebuyers
While it’s a great time to take advantage of your equity and the lower mortgage rates, there are still a few important considerations to keep in mind when making your move in the Brookings housing market:
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Timing Is Everything: With mortgage rates trending down and home values continuing to rise, waiting too long could mean missing out on favorable conditions. The sooner you act, the better your chances of locking in a low rate and finding the right home at the right price.
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Competition Is Picking Up: Even though rates are falling, they could drop even further, and when that happens, more buyers will jump into the market. That increased demand could lead to more competition and higher prices. By making your move now, you can get ahead of the rush.
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Local Expertise Matters: Every real estate market is different, and having a local expert on your side is key. A Brookings Home Team agent can help you understand the nuances of the market here in Brookings, from the best neighborhoods to pricing strategies that work in our local market.
Bottom Line: Now Is the Time to Make Your Move
If you’ve been waiting for the right time to sell your current home and upgrade to a bigger, better home, now could be your moment. With the equity you’ve built and lower mortgage rates boosting your purchasing power, you’re in a great position to make that move today.
Don’t wait until market conditions shift, potentially pushing home prices up and making your dream home less affordable. Let’s connect to make sure you’re taking advantage of the current opportunities in the Brookings housing market. At Brookings Home Team, we’re here to guide you through every step of the buying and selling process, ensuring that your next move is the right one.
Posted by Shane Andersen on
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