Stuck Between Moving and Staying? These 3 Questions Can Help You Decide in Sacramento Metro

If you’re a homeowner in the Sacramento Metro area with a low mortgage rate, you might be feeling a bit stuck these days. Perhaps you’ve considered making a move—whether it’s for more space, a different neighborhood, or just a home that feels more like you. But then, the reality of today’s interest rates hits, and suddenly, that idea gets pushed aside.

This scenario is common across the country. Many homeowners locked in at historically low rates back in 2020 or 2021 are now hesitant to let go of what seems like a great deal—even if their current home no longer meets their needs.

This phenomenon is known as the “lock-in effect,” and it’s a significant factor in today’s housing market. However, it doesn’t mean you’re out of options. If you’ve been unsure about whether to stay or move, consider these three questions to help you gain clarity and make a confident decision.

Is your current home still working for your life—or just your loan?

This is a crucial starting point. When you look beyond the interest rate and the numbers, is your home still supporting your daily life?

Maybe what once felt spacious now feels cramped. Or perhaps your home feels too large and quiet since the kids moved out. Your needs might have changed—maybe you’re working from home more often, caring for aging parents, or have welcomed a new family member. It’s also possible that you’ve simply outgrown the space emotionally. What once felt like a dream home may now feel like a never-ending to-do list.

It’s easy to focus solely on your current mortgage rate and ignore these feelings. But when your home no longer fits your lifestyle, it’s worth considering what it’s costing you to stay—not just financially, but emotionally and mentally. The right home doesn’t have to be perfect, but it should make your daily life easier, not harder.

What would a move really cost you—and what might it make possible?

There’s no denying that interest rates are higher now than they were a few years ago. However, that doesn’t automatically mean moving isn’t financially feasible. The key is to look at the full picture.

Many homeowners in the Sacramento Metro area are sitting on substantial equity. As of early 2024, the average mortgage-holding homeowner in the U.S. holds approximately $299,000 in equity, according to ICE’s Mortgage Monitor report. That’s an increase from $274,000 at the end of 2022 and significantly up from $182,000 at the beginning of the pandemic, based on CoreLogic’s Homeowner Equity Insights report.

This means many homeowners have built considerable equity, which could serve as a down payment on a new home. It could help reduce the amount you need to borrow, lower your monthly payment, or even allow you to avoid private mortgage insurance.

On the flip side, consider the lifestyle benefits a move could provide.

Maybe relocating would bring you closer to family, give your kids access to better schools, or provide that home office or outdoor space you’ve been dreaming about. It could mean downsizing and freeing up more cash each month or finally settling in a neighborhood where you feel truly at home.

Moving isn’t just a financial decision; it’s also about improving your quality of life. When you weigh both the potential gains and costs, you might find that the numbers aren’t as one-sided as they initially seem.

If you stay, are you staying intentionally—or just avoiding a hard choice?

It’s perfectly okay to choose to stay where you are. In fact, for some, that’s the right decision. But it’s important that this choice is made intentionally, not just out of default.

Ask yourself: If I decide to stay for the next three to five years, what changes or investments would I need to make to ensure this home truly works for me? Would I renovate the kitchen that’s no longer functional? Convert the spare room into a proper office? Redesign the backyard to make it more usable?

Staying doesn’t have to mean settling. Sometimes, making peace with your current home involves creating a plan for improvement—whether through small updates, strategic renovations, or simply rethinking how you use your space.

However, staying without a plan can lead to years of quiet frustration. In many cases, those small compromises can add up to something more costly than moving would have been.

Final Thoughts

Feeling “stuck” can be frustrating. But the good news is, you’re likely not as stuck as you think. You’re simply facing a decision that deserves careful consideration.

You don’t need to have all the answers right now. But by asking the right questions about your lifestyle, goals, and finances, you can gain clarity. Whether you choose to stay or move, the objective isn’t to time the market perfectly. It’s to make a decision that supports your life and future.

If you’re unsure about what comes next, let’s discuss your options. We can help you weigh the pros and cons, review real numbers, and explore what’s possible. This isn’t about pressuring you into a sale; it’s about giving you the clarity and confidence you need to move forward in the direction that’s right for you.