Thinking of Moving Up? Don’t Wait.

Convinced that prices have just begun to rise, many homeowners are waiting for their property value to increase more before selling and moving up to a nicer place. That is likely a mistake.

“If you’re selling one house just to move up to another, it does you no good to wait for prices to rise — the price of the move-up home will increase faster than the price of the place you’re leaving behind,” said Redfin CEO Glenn Kelman. “But waiting until interest rates rise is what can really cost move-up buyers, because most economists believe that rates at some point will go back to historical norms, well above 5%. This means that most move-up buyers are likely to be trading in a low-interest loan on the old place for a higher-interest loan on the new one. In this scenario, the only winner is the lender.”

For the full report visit the Redfin Research Center.