As mortgage rates have risen, buyer demand has declined.

Multiple offers and bidding wars are behind us, and although still up year-over-year, home prices are down from their highs of a few months ago and we are seeing month-over-month price declines.

With that in mind, you might be wondering if now is still a good time to sell your house.

A survey of recent sellers by Realtor.com revealed the six most common reasons homeowners sold their homes and mortgage rates, bidding wars, and buyer demand didn’t make the list.

Continue reading below, or watch the following video, to learn what the six reasons were and I will also reveal a seventh reason based on current economic conditions;

This past weekend we were out with a small group of friends. Over dinner, a question about the real estate market came up, as it usually does, and one of the guys made a valid comment, “if someone has a mortgage at 2.85% why would they sell their home to buy another that will come with a mortgage of over 6%?”

I can’t argue with his logic. On the surface it doesn’t make any sense, does it?

Truthfully, the rapid rise in mortgage rates will keep homeowners that don’t need to sell but had been thinking about it, out of the market. In fact, we are already seeing that as the number of homes for sale isn’t rising as rapidly as expected.

The financial aspect isn’t the main reason homes are sold based on the results of a recent survey from Realtor.com. Here’s a look at what survey respondents had to say;

As the graphic shows, a desire for different features or the fact that their current home no longer meets their needs tops the list.

If you’ve had your eye on the perfect home and it suddenly becomes available the majority of people will try and find a way to make the transaction happen, regardless of mortgage rates. Remote work and being able to live farther from the office have also been driving factors for many sellers.

Realtor.com summarized the finds of the survey like this:

“The primary reason homeowners decided to sell in the last year was the realization that, after so much time spent at home, they wanted different features and amenities, such as walkability, outdoor space, pool. etc……”

A friend of mine, who is a Real Estate Broker in Maui, let me know they saw a large influx of people moving to Maui as a result of the remote work opportunities that are now possible. Not a bad place to work remotely from if you ask me!

Financial Reasons Still Matter

While financial reasons were not among the top six answers in the Realtor.com survey that’s not to say they don’t matter or aren’t important.

As my friend pointed out, the rise in mortgage rates will mean it doesn’t make sense for some to trade in a sub-3% fixed rate mortgage for one over 6%, but considering credit card debt is currently at record highs it could make perfect financial sense for others.

While the Federal Reserve raising interest rates doesn’t directly impact mortgage rates, it does impact consumer loans, car loans, and credit card interest rates. I can guarantee you a 6.5% mortgage rate is substantially lower than the interest rate on those credit cards.

With increasing uncertainty about the future of the economy, for some homeowners, selling your current home and using part of the equity to pay off your credit card and consumer debt, and only having a mortgage, even at 6.5%, your overall monthly debt obligation could actually go down.

Bottom Line

There is no one answer, or option, that is right for everyone. If you have questions or would like to discuss your situation in more detail, schedule a call and I’d be happy to review all of the options with you so you can make the decision that’s best for you and your family.