Key Takeaways:
- With increased home values, homeowners want to maximize their equity gains
- Now may in fact be the best time to put your house on the market
- Our experienced team is here to help you get the most out of your home
To Sell Or Not To Sell?
If you’ve been observing today’s hot housing market and waiting on the sidelines for the best time to jump in, you may wonder if now is the best time to plunge. Of course, you already know that your home’s market value has likely grown significantly over the last couple of years. Let’s take a look at what’s caused your home’s growth in value, and if this is the right time to sell.
Housing Supply Chain Explained
It’s simple, really: home values have risen due to imbalances between the current low inventory of housing supply not satisfying increases in buyer demand. As with any other good or service, disruptions in the relationship between supply and demand increase an item’s value.
With so few homes, buyers are once again left with the fierce competition that’s driving the share of homes that sold over the listing price up to 66% . . . With the continued imbalance between supply and demand, home prices are likely to have another year of strong gains and are expected to average about 10% growth for the year.
Selma Hepp, Executive, Research & Insights and Deputy Chief Economist at CoreLogic
The good news for current homeowners is that market demand for new housing is not going away any time soon. So even if the market cools off due to higher mortgage interest rates, demand will continue to outpace the nation’s ability to increase housing supply. The latest Home Price Expectations Survey forecasts that current housing market dynamics will persist over the next five years, causing home values to continue their upward climb, which is good news for you!
As the graph below shows, while the rate of appreciation will moderate over the next few years as the impacts caused by the pandemic continue to normalize, home values will continue rising through 2026:
Using Equity To Your Full Advantage
Growing equity is a powerful tool that homeowners have to build their wealth, and as a homeowner, you’ve seen your equity growth over the last few years. You’ve probably been thinking about the best ways to put those gains to good use. Using those gains to move into a new home can likely lower your monthly costs and be a great way to boost your equity gains.
When you sell your house, the difference between what you owe on your home and its current market value comes back to you in the sale. That money may be enough to cover some, if not all, of the down payment on your next home. Then, the equity you have built up in your new home increases as you make your new monthly payments, while market demand continues to drive the value of your home up.
If you want to know how much equity you currently have in today’s bustling market, it’s crucial to work with a professional, trusted real estate agent aware of the latest market trends when you’re ready to sell.
Equity Gains and Your Next Home
Today’s rising home values aren’t just good news if you’re ready to sell. Because home values are forecast to continue rising in the years ahead, you can rest assured your next home will be an investment that grows over time. That’s one of several reasons why Gallup recently rated real estate as one of the best investments to make in today’s rollercoaster market.
Ready to Sell? Act Now!
So if you’re still weighing whether or not you should sell your house this season, know that rising home values may be opening up an opportunity to leverage your equity gains to fuel a money-making move. Let’s connect to find out how much your home is currently worth and discuss all of the terrific opportunities available in today’s market.