Rock River News
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 building your next home, let’s connect to put your increased equity to good use!
What Does This Mean for Sellers?
Bottom Line
By emilymorrissette-chime-me 11-17-2020
Home Builder Confidence Hits All-Time Record
As the following chart shows, confidence dropped dramatically when stay-in-place orders were originally mandated earlier this year. Since then, it has soared back.Looking at the three-month moving averages for HMI scores, confidence increased in every region of the country: This confidence is definitely warranted. According to a recent NAHB report, single-family housing starts increased 4.1% to a 1.02 million annual rate, and single-family permits increased 6% to a 1.04 million unit rate, meaning newly constructed homes are on the rise. A separate report from the Mortgage Bankers Association (MBA) shows mortgage applications for new home purchases increased by 33.3% compared to a year ago. Joel Kan, Associate Vice President of Economic and Industry Forecasting at MBA, commented on the numbers: “The housing market continued to exceed expectations in August, as housing demand for new homes stayed strong and the job market continued to recover…The new home market has maintained its path of recovery throughout the summer, and record-low mortgage rates and households seeking more space will likely continue to drive demand into the fall.” If you’re thinking about putting your house on the market but are afraid you may not find a home to buy, let’s connect to discuss new construction opportunities in our area.
Confidence Is Validated by the Numbers
Bottom Line
By emilymorrissette-chime-me 11-3-2020
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