We saw a significant increase in home pricing and real estate properties over the last year, which led to a higher net worth for the homeowners. Appreciation and home equity are directly linked – as the value appreciates, so does a homeowner’s equity. And with this recent gains, home owners are experiencing financial stability and well-being on record levels.
Furthermore, the most recent Home Price Expectations Survey(a survey of a national panel of over one hundred economist, real estate experts, and investment and market strategists) forecasts home prices will continue appreciating over the next five years! Adding to the record amount of equity homeowners have already gained over the past year. Below are the expected yearly rates of home price appreciation from the report:
What Does This Mean For The Homeowners
CoreLogic recently released their quarterly Homeowner Equity Insights Report, which tracks the year-over-year increases in equity. It shows an average annual gain of $33,400 per borrower over the past 12 months. In the report, Dr. Frank Nothaft, Chief Economist for CoreLogic, further explains:
“Double-digit home price growth in the past year has bolstered home equity to a record amount. The national CoreLogic Home Price Index recorded an 11.4% rise in the year through March 2021, leading to a $216,000 increase in the average amount of equity held by homeowners with a mortgage.”
It is expected that homeowners will continue to build on the past year’s record levels of home equity and have a sustained growth of home prices and their financial prosperity. This also represents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With hovering near record lows in homes for sale and high buyer demand, this might be the best time to sell your current house and move into a house that better fit your needs.
Home prices will continue to appreciate over the next five years, associated with that is the equity gains that homeowners can use to build household wealth. If you’re a current homeowner who’s ready to take advantage of your built-up equity, let’s connect today to discuss your options.