Homeownership is both one of Americans’ favorite type of investment – since you can live in it! - and one that is a form of forced savings as the home’s value appreciates.
Even before the current health crisis swept America, home equity was increasing and it continues to grow, giving sellers powerful options in the current housing market.
CoreLogic’s Q2 Homeowner Equity Insights Reports states that:
“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.”
As shown in the map below, CoreLogic also indicates that home equity is increasing in every state:
Sellers may have more invested in their homes than they realize. That equity may be used toward the purchase of a larger, more attractive home, which is considered the wealth effect of rising equity.
According to top economists, Fast-rising demand coupled with the limited supply of homes for sale is resulting in continued house price appreciation.
For those considering a move, there’s no time like the present to reach out to an experienced professional to be a trusted guide, and help understand how putting equity can work for them. Sellers may be surprised how affordable an upgraded home can be, given the position they are in right now.