How Much Equity Do You Have In Your Home? You Will Be Surprised!
How Much Equity Do You Have In Your Home? You Will Be Surprised! CoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.
“U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.”
Price Appreciation = Good News for Homeowners
Frank Nothaft, CoreLogic’s Chief Economist, explains:
“Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years.”
He also believes this is a great sign for the market in 2018, saying:
“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”
This is great news for homeowners! But, do they realize that their equity position has changed?
A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).
How Much Equity Do You Have In Your Home? You Will Be Surprised!
The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do!
Perceived Equity In Homeownership
This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.
Fannie Mae spoke out on this issue in their report:
“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”
Bottom Line
If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Let’s get together to evaluate your situation!
Call Us Now To Sell Your Home…
Office: 909.985.9392 or Text Us: 714.657.6634
93.9% Of Homes in The US Have Positive Equity
The outlook for 2017 remains positive as well, as an additional 600 thousand properties will regain equity if home prices rise another 5% this year.
20 Tips for Preparing Your House for Sale
Selling your home is a matter of competition in today’s real estate. You’re competing with other like minded sellers all fighting for the right offer at the right from an eager buyer.
Do Your Future Plans Include a Move? What’s Stopping You from Selling Now?
Do Your Future Plans Include a Move? What’s Stopping You from Selling Now? Are you an empty-nester? Do you want to retire where you are, or does a vacation
California Prop 60 and Prop 90 Property Tax Transfer Rates
California Prop 60 and Prop 90 Property Tax Transfer Rates
Home Buyer Demand Continues To Outpace Homes For Sale
Home Buyer Demand Continues To Outpace Homes For Sale. The price of any item is determined by the supply of that item, as well as the market demand.
Inventory Drops Again, Sales Slow
Inventory Drops Again, Sales Slow. Inventory of existing homes for sale dropped to a 4.3-month supply, marking the 25th month in a row of declines.
Americans Believe Real Estate is Best Long Term Investment
Americans who have money to set aside for the next 10 years would rather invest in real estate than any other type of investment.
11 Tips Sellers Need When The For Sale Sign Goes Up
11 Tips Sellers Need When The For Sale Sign Goes Up 11 Tips Sellers Need When The For Sale Sign Goes Up. The sellers have decluttered, painted, made repairs and spiffed up the landscaping. The curb appeal is at its best. After the long process of getting...
3 Tips to Succeed in Today’s Real Estate Market
3 Tips to Succeed in Today's Real Estate Market Here are 3 Tips to Succeed in Today's Real Estate Market. In today’s highly competitive real estate market, where inventory levels are not keeping up with the constant stream of buyer demand, there are steps...
Thinking of Selling? You Should Act NOW While Inventory Is Low
Thinking of Selling? You Should Act NOW While Inventory Is Low If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We...
3 Questions to Ask Before You Buy Your Dream Home
3 Questions to Ask Before You Buy Your Dream Home If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interests at heart, they may not be fully aware of your needs...
5 Benefits To Homeownership That Should Be At The Top Of Your List
5 Benefits To Homeownership That Should Be At The Top Of Your List 5 Benefits To Homeownership That Should Be At The Top Of Your List. Recently, Freddie Mac reported on the benefits of homeownership. According to their report, here are the five benefits...
Homeowners: Your Home Must Be Sold TWICE
Homeowners: Your Home Must Be Sold TWICE - Price To Sell In today’s housing market, where supply is very low and demand is very high, home values are increasing rapidly. Many experts are projecting that home values could appreciate by another 5%+ over the...
How Record Low Interest Rates Impact Your Home Purchasing Power
How Record Low Interest Rates Impact Your Home Purchasing Power According to Freddie Mac’s latest Primary Mortgage Market Survey, interest rates for a 30-year fixed rate mortgage are currently at 3.96%. This is still near record lows in comparison to...
5 Reasons Why You Should Not For Sale By Owner
5 Reasons Why You Should Not For Sale By Owner In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their homes on their own, known in the industry as a For Sale by Owner (FSBO). There are several...
Check This Out – Median Days on the Market Drops to 27
Check This Out - Median Days on the Market Drops to 27 Some Highlights: The National Association of REALTORS® surveyed their members for their monthly Confidence Index. The REALTORS® Confidence Index is a key indicator of housing market strength based on a...
Harvard Study: Epic Housing Shortage Being Reported
Harvard Study: Epic Housing Shortage Being Reported A Harvard study shows an epic housing shortage being reported. The Joint Center of Housing Studies (JCHS) at Harvard University recently released their 2017 State of the Nation’s Housing Study, and a...
Your Opportunity to Achieve the American Dream Keeps Getting Better!
Your Opportunity to Achieve the American Dream Keeps Getting Better! Forbes.com recently released the latest results of their American Dream Index, in which they measure “the prosperity of the middle class, and…examine which states best support the...