Question: “I own a smaller home and am thinking about buying a bigger one… is now a good time to buy up?”

Answer: Part of the answer depends on where/what you are selling and where/what you are buying.  The general rule of thumb is that this is a good time to make a move if you’re sensitive to interest rates (which are under 6% again) and if you either have equity in your current home or cash to make up the difference if you owe more than the home is worth.

If you are a homeowner that owes more on your house than it is worth, you might be asking why you shouldn’t wait for the market to come back before selling.  Well, if you “lost” money on your current house you will “gain” money on the new house since it too is selling for far less than it would have a few years ago.  If your desire to buy up is strong and you have the cash to do it now, waiting until you can “break even” on your current house may take several years and then the house you trade up to will be more expensive as well.