Would you move if it was to your advantage?

By
Real Estate Broker/Owner with Morningside Homes, LLC 720-231-5200 DRE# ER300941

 

A much-repeated investment strategy is to buy low and sell high.  Some people who purchased around the financial crisis of 2010-2012 are poised to make considerable profits.

The median home price in America is now $295,300 up from $155,600 in February 2012 which calculates close to an 8% annual increase.  The median equity that homeowners have earned during the same period is $140,000.

Inventory is in short supply while demand is high which has caused prices to increase.  Factors that continue to contribute to the lower number of homes on the market are record low mortgage rates and housing starts have not met expectations since the Great Recession.  This year, people spending more time at home due to the pandemic has caused some people to rethink their current living space which has added to the demand.

Some experts believe that a significant portion of the workforce will continue to work from home after the pandemic has passed making the motivation for a larger home more of a long-term effect.

The median days on the market for a listing is 24 which is a direct result of the low inventory and heightened competition.  Sold homes are receiving an average of three offers with some situations ending in a bidding war.  This is an advantage for a seller who can not only realize a higher sales price but also accelerate a move into another home.

While the pandemic has certainly wreaked havoc on some businesses like the hospitality industry, real estate has continued to boom. Seven out of ten sales contracts are closing on-time which can give sellers a great deal of confidence.

Taxpayers can exclude up to $500,000 of qualified gain if they are married and up to $250,000 if single.  Some homeowners are taking the profit from their homes while at the top of the market, reserving part of their equity for investments, and purchasing another home with a higher loan-to-value mortgage at the incredibly low mortgage rates now available.

If you're curious to see if this might work for you, contact us at (720) 231-5200 to find out what your home is worth now and what homes are available that may fit your lifestyle better.  Download our Sellers Guide.

Posted by

Buy or Sell with Patty Clark              Denver/Aurora Co. and surrounding areas 

Chris and Patty

    Helping Families Move with Care

  If you would like to be sent properties on a daily or weekly  basis just call or email me and let me know your wants and needs. A match will be made with a home you love and with monthly payments you can afford. I specialize in first time home buyers and sellers who are

          ready to downsize or move to a larger home as the family grows

     

                                                     Morningside Homes, LLC

patty@morningsidehomes.com

www.morningsidehomes.com
Cell: 720-231-5200                       CRS,GRI,WCR,SFR,CNE, MRE

 

Comments (2)

Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Homeowners  have gained a lot this past year and it makes for an incentive to move, but it has to be practical

Jan 04, 2021 05:08 PM
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Yes, 2012 was a good time to buy and the equity gain does give those home owners lots of good options.  Thank you for the ideas.

Jan 04, 2021 09:01 PM

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?