by | Sep 2, 2021 | Goodwin Realty & Associates, Inc, Selling Your Home |
Home prices have increased significantly over the last year, which in turn has grown the net worth of homeowners. Appreciation and home equity are directly linked – as the value of a home increases, so does a homeowner’s equity. And with these recent gains, homeowners are witnessing their financial stability and well-being grow to record levels.
In more good news for homeowners, the most recent Home Price Expectations Survey – a survey of a national panel of over one hundred economists, 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 year-over-year rates of home price appreciation from the report:
What Does This Mean for Homeowners?
Home prices are climbing today, and the data in the survey indicates they’ll continue to increase, but at rates that approach a more normal pace. Even still, the amount of household wealth a homeowner stands to earn going forward is substantial. This truly becomes clear when we consider a scenario using a median-priced home purchased in January of 2021 and the projected rate of appreciation on that home over the next five years. As the graph below illustrates, a homeowner could increase their net worth by a significant amount – over $93,000 dollars by 2026.
Home Price Appreciation and Home Equity
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.”
The expected, sustained growth of home prices means homeowners can continue to build on the past year’s record levels of home equity – and their financial prosperity. It also presents today’s homeowners with a unique opportunity: using their growing equity for a home upgrade. With so few homes available to purchase and strong buyer demand, there may not be a better time to sell your current house and move into one that better meets your needs.
Bottom Line
Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can 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.
by | Aug 30, 2020 | Goodwin Realty & Associates, Inc, Osceola Realty |
Amid the current pandemic, many real estate buyers are looking to take advantage of low mortgage rates, less competition, and motivated sellers. We’re also seeing a trend for some motivated buyers looking to relocate from dense urban areas to “smaller” less populated communities and homes with more living space and room to potentially work at home if their profession allows for it.
Remote or socially distanced real estate closings are also happening now to keep everyone involved safe. If you think you could be a candidate for buying a house sight unseen, here are some things to consider that will help make your effort successful.
Choose The Correct Agent
To keep transactions moving, tech-savvy agents, like those in Goodwin Real Estate & Associates, have been pivoting to the new norm brought about by the COVID-19 pandemic. The right agent is instrumental in helping you with potentially buying a house sight unseen. Look for an agent who’s not afraid of technology and prepared to take advantage of tools such as FaceTime, Facebook Live, and Zoom to communicate effectively and help you explore properties virtually.
Be Proactive in Your Virtual Search
Before asking your agent to start scheduling virtual tours, be sure to do your homework so you’re not wasting your time on listings that aren’t the right match. A little time up front can save you a lot of time later in the process.
Property Photos And Videos
Perusing listing photos and videos that may be provided with a property is extremely helpful obviously. If you see a listing you like and a video is provided, ask if there are more videos. Often times more video was recorded but it wasn’t all included in the final listing video to keep it shorter.
Instead of exploring just the property you’re considering, make sure you check out the curb appeal of the surrounding homes in the neighborhood. You want to get a sense of what the neighborhood is like and how the owners of surrounding homes are caring for their properties. You don’t want to bother exploring properties any further if the overall standards for upkeep and care aren’t aligned with what you’re seeking in your new neighborhood.
The Virtual Onsite Tour
When a property has checked all the boxes and remains a candidate, it’s time to see what your agent can do about walking you through a live virtual tour. It’s possible there may be scheduled live virtual tours which you should check out as well which will be helpful, but your agent can hopefully negotiate an onsite visit on your behalf so you can explore more thoroughly with your agent as they walk through the property.
An experienced agent should know what to look for to understand what kind of shape a property is in. This would normally include things like doors and windows, signs of flooding or roof leaks, and any visible signs of unstable foundations. It would be a good idea to create a list of anything specific you want your agent to look at closely with you while they walk through a property.
Kitchen
Kitchens can be costly to upgrade, so you want to thoroughly explore what’s in the kitchen to make sure you know what you’re getting and what might need upgrading. Ask your agent to show you the sink fixtures, cabinets and appliances closely and look for signs of wear and aging. If you’re not planning on doing a remodel, you want to walk away from the virtual tour with a good idea of what you might need to replace.
Heating & Cooling Systems
Ask your agent to find out about the age and shape of the heating and cooling system in the home. Is it new or approaching end of life? Like the kitchen, this is another area that could be costly. A thorough home inspection should be part of your process which should include an evaluation of these systems to help you understand their condition and any possible expenses they may require.
Instead of exploring just the property you’re considering, make sure you check out the curb appeal of the surrounding homes in the neighborhood. You want to get a sense of what the neighborhood is like and how the owners of surrounding homes are caring for their properties. You don’t want to bother exploring properties any further if the overall standards for upkeep and care aren’t aligned with what you’re seeking in your new neighborhood.
These are all very useful suggestions, but without the help of an experienced realtor, the process can be daunting. Goodwin Realty & Associates has been assisting buyers and sellers for 47 years.There is simply no substitute for experience, integrity, and knowledge of the market. Call Goodwin Realty at 407.846.2787. today.
