Homeowner Equity Increases
Homeowner Equity Increases an Astonishing $1 Trillion
A recent study by CoreLogic revealed homeowner equity increases reached $1 trillion over the last twelve months. CoreLogic ‘s 2020 3rd Quarter Homeowner Equity Insights report reported four major findings:
- Homeowners with mortgages have seen their equity increase by a total of $1 trillion since the third quarter of 2019.
- The average homeowner gained approximately $17,000 in equity over the past year.
- This is a 10.8% increase in equity over last year.
- The average household with a mortgage now has $194,000 in home equity.
This has given many homeowners the ability to redesign their homes to meet their changing needs. Frank Martell, President and CEO of CoreLogic, explains in the report:
“The housing market has remained a strong pillar in an otherwise tumultuous economic year. A sharp rise in demand, spurred by record-low interest rates, continues to bolster homeowner equity. And with many people now spending more time than ever before at home, some homeowners have tapped into their strengthening equity to fund renovations.”
This build-up in equity also gives more options to homeowners who have been financially impacted by the pandemic. Today, homeowners with substantial equity are in a much better position to work out a deal with their lender if they cannot pay their mortgage. Alternatively, they also have the power to sell and walk away with their equity in the form of cash or as a down payment toward a more affordable house. Frank Nothaft, Chief Economist for CoreLogic, addresses the issue in the report:
“Over the past year, strong home price growth has created a record level of home equity for homeowners…This provides an important buffer to protect families if they experience financial difficulties and is one reason for the generational-low in foreclosure rates reported.”
Here’s a map showing equity gains by state:
This gain in home equity is a blessing for homeowners in these trying times, and it seems that the next two years will continue to reward those who own a home.
Last week, the National Association of Realtors (NAR) held their 2020 Real Estate Forecast Summit. At the summit, they shared the results of a recent survey of 23 economic and housing market experts. The median forecast among the experts called for home values to increase further by 8% in 2021 and 5.5% in 2022.
So, in a year that has many of us reevaluating what “home” really means, those who own their homes have been rewarded with a financial windfall that averages $17,000 individually and totals $1 trillion nationally.
With Homeowner Equity Increases, It Is A Great Time to Sell
In today’s rapidly changing market, to capitalize on your home equity end ensure the best possible return on your investment, it’s critical to make sure you have a digital game plan and an effective online marketing strategy when selling your home. One of the ways your agent can help with this is to make sure your listing photos and virtual tours stand out from the crowd.
So, if you’re ready to move forward, our virtual practices can help make your sale happen. We know exactly what today’s buyers need, and how to put the necessary digital steps in place. For example, according to the same survey, when asked to select what technology would be most helpful when deciding on a new home, here’s what today’s homebuyers said, in order of preference:
Virtual tour of the home- Accurate and detailed listing information
- Detailed neighborhood information
- High-quality listing photos
- Agent-led video chat
- Paperless transactions
So, if you are contemplating selling a home in Bonita Springs, Estero, Naples or Fort Myers, we encourage you to work with a Professional Real Estate Agent or REALTOR® who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price.
Now more than ever, an agents presence on the internet is critical to selling your home. Let’s connect to talk about how we would leverage new real estate technology such as virtual tours and high end photography, e-mail marketing, social media marketing and much more.
Should I Use a Realtor or Sell on My Own?
Bottom Line:
If you are looking for a focused and goal-oriented Realtor in southwest Florida who will help you achieve your Real Estate needs, please reach out to us directly. Additionally, if you are looking for a golf community expert or you are considering buying or selling a home, luxury home, vacation home, second home, larger home, pool home, golf home, pet-friendly or dream home, call or text 239-370-0892 or email Matt@NaplesGolfGuy.com
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December 17th, 2020, Posted by NaplesGolfGuy
