Home Equity Rebounds

How Much Equity Do You Have In Your Home?  It May Be More Than You Think!

According to the latest market reports, more than 250,000 properties regained equity during the third quarter of last year.  The even better news is that 92 percent of all properties with a mortgage are now in a positive equity position.

So what does that mean for homeowners?  Ultimately, price appreciation means borrowers have more equity in their homes.  Most Americans single largest source of wealth is the equity in their homes.  Over the next year, home prices are expected to increase at least 5 percent nationwide.  The result will be an even larger increase in home equity values for most homeowners.

Unfortunately, according to a recent study by Fannie Mae, many homeowners don’t even realize their home has regained most if not all the equity they lost during the downturn in the housing market.  The report shows that almost a quarter of Americans still think they are upside down on their homes.  In reality, only 8% of homeowners are upside down.  Additionally, only 37 percent of Americans think they have “significant equity” or more than 20%, when in reality, 74% do!

Since people don’t realize they have quite a bit of home equity to work with, they are missing a great opportunity to move into a home that will improve their lifestyle.  Whether a homeowner is looking to downsize or move into a larger home, more equity puts current homeowners in a great position to make a move.

Fannie Mae’s take:

“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 not sure how much equity you have in your home, contact a real estate agent to get a sense of what your home is worth.  You may be surprised how much equity you have in your home.

Are you considering selling your home in Naples? Or perhaps Bonita Springs?  Call me today for a FREE market analysis.