Why More Sellers Are Choosing To Move, Even with Todayâs Rates
Itâs hard to let go of a 3% mortgage rate. Thereâs no question about it. Itâs the main reason why so many homeowners in Chicago, Illinois, and across the country have delayed their move-in in recent years. But hereâs something to consider.
While your low mortgage rate might be ideal, it doesnât make up for being too cramped, having a staircase your knees canât handle anymore, or being 1,000 miles from your family. And those real-life needs are pushing more sellers off the fence despite todayâs mortgage rates.
Data shows the share of homeowners with a mortgage rate below 3% is dropping as more people move. And, as a result, the share of homeowners taking on a mortgage rate above 6% is rising, too (see graph below):
The Biggest Reasons People Are Moving Right Now
Why are some homeowners in places like Chicago willing to take on a higher mortgage rate? A survey from Realtor.com helps shed light on that.
It shows 79% of homeowners considering selling today are doing it out of necessity. And that same survey says most of the necessary reasons people are moving are non-financial (see graph below):
Do any of these reasons resonate with you, too?
You Need More Space: Whether itâs a new baby, children needing their rooms, or having your parents move in so itâs easier to take care of them, outgrowing your space can happen fast, especially in growing metro areas like Chicago, Illinois.
You Need Less Space: The kids are out of the house now, and youâre craving a life thatâs a little simpler. Downsizing can be a major relief: fewer rooms to clean, less to maintain, and lower utility bills, too.
You Want to Be Closer to Family: Whether itâs to help with grandchildren or care for aging parents, sometimes the pull of being near loved ones outweighs the math. This is a major reason for moves in Chicago neighborhoods and suburbs alike.
A Relationship in Your Life Has Changed: Divorce, separation, or moving in together after a marriage or new partnership â all can create the need for a fresh start and a new place to call home.
Your Job Is Taking You Somewhere New: If you have finally landed your dream job or your partnerâs company is relocating, you may need to move too. For many professionals in Chicago, this is becoming more common post-pandemic.
What About Mortgage Rates?
Yes, experts expect mortgage rates to ease, but slowly. The latest projections show only modest declines this year, not the 3% you may be hoping for (see graph below):
So, while waiting for a big drop in mortgage rates might sound strategic, it could just mean more time feeling stuck in a space that no longer fits.Thatâs why buying or selling a home brings real benefits. And for many in Chicago, Illinois, that waiting game has already gone on long enough.
According to Realtor.com, nearly 2 in 3 potential sellers have been considering moving for over a year. If youâre one of them, maybe itâs time to ask:
How much longer are you willing to press pause on your life?
Your current house fits your life five years ago. But that âfor nowâ house you bought in 2020? It just canât deliver what you need in 2025, especially if your needs have changed and youâre still holding out for lower mortgage rates.
And thatâs not just okay, itâs normal.
Mortgage rates are part of the equation, for sure. But the bigger question is:
What kind of home do you need to support the life youâre living now?
Letâs talk about whatâs changed and how experienced real estate agents at KM Realty Group LLC, based at 111 N Wabash #1734, Chicago, IL 60602, United States, can help you make the kind of move that takes your life forward. Call us today at (312) 283-0794.