If you’ve been thinking about selling your apartment and moving into a larger or more upgraded space, you’re not alone. According to a recent Inman survey, the top motivator for today’s buyers is the desire for more space or a nicer apartment (see graph above) - courtesy of KCM.
Many people in New York City, like yourself, might have been holding off on this goal due to recent market uncertainties. It makes sense—upgrading to a bigger apartment often means higher monthly costs, and affordability is a major factor. But here’s the good news: now is actually a great time to make your move. Here’s why:
You Have a Lot of Equity To Leverage
One of the main benefits in today’s market is the significant amount of equity you’ve likely built in your current apartment. Even with fluctuations in the housing market, property values in New York have remained strong. As Selma Hepp, Chief Economist at CoreLogic, points out:
"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."
If you’ve owned your apartment for a few years, you may have built up significant equity, which can go toward the down payment on your new place. This can help make your upgrade more affordable than you might think. To get an idea of how much equity you have, reach out to me for a professional equity assessment.
Mortgage Rates Are Falling, Boosting Your Buying Power
Another reason why now is a great time to upgrade your apartment is that mortgage rates are trending downward. Lower rates make your future monthly payments more manageable and increase your purchasing power. Nadia Evangelou, Senior Economist at the National Association of Realtors (NAR), explains:
"When mortgage rates fall, the interest portion of monthly payments decreases, lowering the total payment. This makes it easier for more borrowers to qualify for mortgages that may have been out of reach at higher rates."
This gives you more flexibility when apartment hunting and may allow you to afford a unit in a building or location that was previously out of your budget. Let me connect you with trusted lenders who can guide you in finding the best financing options.
Bottom Line
If you’re ready to sell your current apartment and move into the larger, upgraded space you’ve been dreaming of, don’t wait. Your equity, paired with lower mortgage rates, gives you a fantastic opportunity to make your move now.
To make the best decisions and take full advantage of your market position, work with a trusted real estate professional like me. I’ll guide you through every step of the process and help you find your dream apartment in New York.
