Home Equity Yields More Options Today
Property values have been continuing to rise for years now and despite the pandemic the number of home sales has as well. This all plays into the fact that homeownership is one of the greatest ways to invest into your financial future. Building home equity can act similarly to a forced savings plan as your home appreciates. Even before the current pandemic home equity was on the rise and now it has continued. This bodes well for giving sellers more options while encouraging buyers to enter the game.
According to CoreLogic, here is what a recent report has shared after the midpoint of this year:
“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.”
Additionally, here is what their Chief Economist has stated:
“The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”
What this means is that many homeowners may have even more invested in their homes than they may realize. This information can be helpful to know for anyone who owns, or is looking to buy or sell.
For those who currently own their home the increase in equity can mean a few things. For those looking to renovate then they could potentially have an easier time doing a home equity line of credit to finance home improvement projects. Alternatively, anyone looking to purchase a second home could potentially refinance, pull out some equity and use it towards their next home purchase.
For those looking to sell in the near future, this can yield some options. The increased equity will mean more cash for them whether they are looking to afford a larger property or more comfortably downsize to a smaller home.
For buyers this should instill some encouragement that property values are increasing and getting into the market sooner than later will help them take advantage of the fast growing equity.
If you are interested in learning more about the market or what your home is worth today, please feel free to contact me.