Home ownership is one of the best ways to invest in your financial future, especially when your home equity is growing. Home equity is a form of forced savings that can serve to your advantage as the value of your home is valued. Across the country, domestic equity grew before the health crisis swept our nation, and it continues to grow throughout the year, giving sellers powerful opportunities in this market.
According to the recently released Q2 Equity Insights Report on Manager of CoreLogic:
“U.S. homeowners with mortgages (about 63% of all real estate) have seen their equity increase by a total of nearly $ 620 billion since the second quarter of 2019, an increase of 6.6%, year on year. “
Dr. Frank Nothaft, Chief Economist by CoreLogic, attributes much of the stock growth to rising house prices:
“The CoreLogic Home Price Index recorded a 4.3% annual price increase until June, which supported an increase in domestic equality. “
As the map below shows, CoreLogic also indicates that domestic equality is growing in every state:
“In the second quarter of 2020, the average homeowner earned about $ 9,800 in a tie over the past year. “
What Does This Mean for Vendors?
When equity grows, as it does today, you may have invested more in your home than you realize. Mark Fleming, Chief Economist at First American, notes:
“As homeowners gain equity in their homes, they are more likely to consider using that equality to buy a larger or more attractive home – the rich effect of increasing equality. In today’s housing market, rapidly growing demand against the limited sale of homes has resulted in continued house prices. “
If you’ve been thinking of making a move – whether that’s moving into a larger home or reducing it to a smaller one – it’s a great time to contact a real estate professional to learn how to drive your equity for you. You may be able to pay that equity up front on your next home purchase and pay it off sooner rather than later.
If you’re thinking of selling, let’s get connected so you can take advantage of what the current market offers today.
Content previously posted in Keep Current Things