While the ongoing housing supply deficiency is creating a sellers’ market around the country, it is also having a positive effect for anyone who currently owns a home. Consistent increase in home sale prices mean that homes in the area also see relative increases in their equity, due to the market demand.
According to CoreLogic’s Homeowner Equity Report, the average American household gained over $14,000 in equity over the course of the last year, largely due to home value increases.
This continued gain in home values has caused quite a stir amongst industry experts and homeowners alike who are concerned that the ongoing inventory deficiencies and uptick in home values could lead to another bubble-scenario, circa 2006/7. There is a definitive difference within the homeowner set this time around, though.
In lieu of attempting the house-flipping efforts of a decade ago, today’s homeowners that are gaining equity from the housing market’s current status are using that improvement in their financial scenario to invest in their families, themselves and their homes.
Homeowners are using their home’s value to invest in college for their kids, in starting their own businesses and upgrading their home. This model shows that the market learned from the “quick money” mistakes of the prior decade and sees their home as the long-term investment it is meant to be.
Make use of your Home’s Value
If you suspect you have gained equity in your home and have a use for that financial windfall, now is the time to speak to a local mortgage professional about how you can get the most from your home’s value.
We can help you navigate your options and understand how to keep your loan manageable while investing in your family and your future.