- Though 2020 was financially devastating for many, most homeowners saw a dramatic gain in home equity over the past 12 months.
- US homeowners with mortgages saw a 2020 home equity increase of over $1 trillion.
- The average homeowner gained approximately $17,000 in equity in the past year alone—that’s a 10.8% increase over last year.
- The average home with a mortgage now has $194,000 in equity—which makes it a fantastic time to sell a home, especially if you want to move up. Linda Craft & Team can help if you’re in that boat!
2020 Home Equity Increases Give Homeowners Options
Though 2020 has been a tumultuous year, the housing market has remained a strong pillar in an otherwise uncertain economy. Low interest rates spurred a steep climb in buyer demand, which in turn drove home prices—and equity—upwards. In total, 2020 saw a $1 trillion increase in homeowner equity. This equity buildup has given many homeowners options for improving their time spent at home. Here’s how.
Homeowners with equity are better able to handle financial hardship
Homeowners struggling to make mortgage payments are actually in a much better position to work out a deal with their lender if they have some home equity. That equity provides a buffer—which explains why foreclosure rates are at a generational low.
Homeowners can redesign their homes to meet changing needs
This year, more people have spent more time at home than ever before. For those who’ve found their homes wanting in space or features, increased equity has provided the ability to redesign homes to meet changing needs. Many homeowners have used their increased equity to fund renovations.
Sellers could gain big towards a down payment on a move-up house
One of the biggest perks of increased home equity, of course, comes from selling. Sellers who list their homes at a time of drastically increased values and prices stand to gain tens of thousands of dollars in a sale. Many who do this use that gain on a down payment towards a move-up house.
Home Values Are Expected to Continue to Increase
A recently released report by CoreLogic shows that North Carolina homeowners saw an average increase of $16,000 in equity. The National Association of Realtors forecasts that gains will increase through 2021 by as much as 8%, and 5.5% in 2022.
The bottom line: It’s a fantastic time to be a homeowner, and an even better time to be a home seller. Listing your home now could be hugely profitable, and could lead to significant financial gains, which could then be put towards a down payment on a larger or more expensive home.
Thinking About Making a Move in the Triangle?
Are you thinking about buying or selling a home in the Triangle of North Carolina? Linda Craft & Team is here to help! Contact us today at 919-235-0007 to learn more about how we can put our 350+ combined years of experience to work for you.