Home equity is an asset that comes from a homeowner's interest in a home. To calculate equity, subtract any outstanding loan balances from the property's market value. Home equity can increase over time if the property value increases or the loan balance is paid down.
Barnegat home values have increased by over 10% in the last two years. Year to date, the median sale price of homes in Barnegat has increased by 13.4% in comparison to 2017.
According to a recent report by ATTOM Data Solutions, home sellers who sold their homes in the third quarter of 2018 benefited from rising home prices and netted an average of $61,232.
This is the highest average price gain since the second quarter of 2007 and represents a 32% return on the original purchase prices.
After the Great Recession, many homeowners were left in negative equity situations but home price appreciation in the recovery period since then has given homeowners something to smile about.
The results from ATTOM fall right in line with data from the latest edition of the National Association of Realtors’ (NAR) Profile of Home Buyers and Sellers. Below is a chart that was created using NAR’s data to show the percentage of equity that homeowners earned at the time of sale based on when they purchased their homes.
Even though those who purchased at the peak of the market netted less than those who bought before and after the peak, the good news is that there was a double-digit profit to be had! Many homeowners believe that they are still underwater which has led many of them to not even consider selling their houses.
If you are curious about how much equity you’d earn if you sold your Barnegat home, let’s get together to perform an equity review and determine the demand for your home in today’s market!
Karl Hess provides expert real estate services to residential buyers and sellers in Barnegat and the surrounding area. Contact us today for more information on Ocean County Real Estate and for professional assistance navigating this complex home market.
As always, thank you for your time and feel free to get in touch if you have any questions. Karl Hess, Your Real Estate Expert on The Jersey Shore in Ocean County,