Home Equity Gives Sellers Options in Today’s Market
Homeownership is one of the best ways to invest in your financial future, especially as your home equity grows. Home equity is a form of forced savings that can work to your advantage as the value of your home appreciates. Across the country, home equity was increasing before the health crisis swept our nation, and it continues to grow throughout the year, giving sellers powerful options in this market.
According to the just-released Q2 Homeowner Equity Insights Report by CoreLogic:
“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $620 billion since the second quarter of 2019, an increase of 6.6%, year over year.”
Dr. Frank Nothaft, Chief Economist for CoreLogic, attributes much of the equity growth to rising home prices:
“The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”
As the map below shows, CoreLogic also indicates that home equity is increasing in every state:
“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”
When equity is rising, as it is today, you may have more invested 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 equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”
If you’ve been considering making a move – whether that’s to get into a bigger home or to downsize to a smaller one – it’s a great time to reach out to a real estate professional to learn how to put your equity to work for you. You may be in a position to pay that equity forward toward your next home purchase and afford it sooner rather than later.
If you’re thinking of selling, let’s connect so you can take advantage of what the current market has to offer today.
Stay up to date on the latest real estate trends.
San Francisco's single-family home market continues to reach new heights, with the median sale price climbing 22.56% year-over-year to $2,200,000. This marks one of th… Read more
Prices are on the rise across the board, with single-family homes and condos both posting year-over-year gains for the first time in over a year.
Median sale prices continue their remarkable ascent, with single-family homes up more than 21% and condos up more than 18% year-over-year.
After several months of relative stability, single-family home prices in the East Bay showed some softening in April.
May 9th | 10AM - 1PM | 4 Norwich Street, San Francisco
Median sale prices are soaring in San Francisco, with condos up more than 27% and single-family homes up more than 18% year-over-year. Inventory levels remain more tha… Read more
Single-family homes are selling at a blistering pace, with the average listing moving in under two weeks.
February brought extraordinary price appreciation to San Francisco, with both single-family homes and condos posting impressive year-over-year gains. Single-family hom… Read more
Single-family home prices in Alameda County bounced back to $1.3 million, while condo prices remain mixed with a notable rebound in Contra Costa County.
You’ve got questions and we can’t wait to answer them.