The Great News About Rising Prices for Homeowners

By
Real Estate Agent with RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio

Great news

Recently there has been a lot of talk about home prices and if they are accelerating too quickly. As we mentioned before, in some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers out looking for a home, which has caused prices to rise.

The great news about rising prices, however, is that according to CoreLogic’s US Economic Outlook, the average American household gained over $11,000 in equity over the course of the last year, largely due to home value increases.

The map below was created using the same report from CoreLogic and shows the average equity gain per mortgaged home from June 2015 to June 2016 (the latest data available).

map

For those who are worried that we are doomed to repeat 2006 all over again, it is important to note that homeowners are investing their new-found equity in their homes and themselves, not in depreciating assets.

The added equity is helping families put their children through college, invest in starting small businesses, allowing them to pay off their mortgage sooner or move up to the home that will better suit their needs now.

Bottom Line

CoreLogic predicts that home prices will appreciate by another 5% by this time next year. If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let's get together to discuss your options!

Posted by

 

Tony Morganti, CRS, ABR

330-352-9513

Comments (3)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Our market is set for a double digit increase because of the very low inventory

Feb 15, 2017 07:29 AM
Tony Morganti

Hi William -  I believe lack of inventory is widespread.  Let's get out and list more homes.  There's plenty of inventory out there...........it's just not listed yet.

Feb 15, 2017 04:33 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Valuable information and good points Tony Morganti . Prices in the Phoenix metro are supposed to lead the nation in the top 100 years over year price increase percentages in 2017 per Realtor.com. Greetings from sunny Scottsdale 

Feb 15, 2017 07:39 AM
Tony Morganti
RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio - Cuyahoga Falls, OH
CRS, ABR, SRES - Cuyahoga Falls, Stow

Thank you Jeffrey Masich for the comment and info on your area.  Sounds like a great market.

Feb 15, 2017 04:32 PM