Are You Sitting on a Pot O’ Gold?

More than likely you are sitting on a pot of gold or should I say sitting in a pot of gold, your home that is. If you own your home you probably have thousands of dollars in equity just waiting for you to access by selling in this great seller’s market, a HELOC (home equity line of credit) to be used for repairs, upgrades or a Reverse Mortgage (for certain circumstances) and
your equity can even be used for the purchase of a new home ( call me details). Interest rates are at a all-time low below 3% depending on qualification.

According to the NW Reporter from the NWMLS Homeowners with mortgages saw an average equity gain of $17,000 for the third quarter of 2020 compared to the same period a year ago. Owners in Washington state enjoyed more than double the U.S. amount with an average gain of $35,800 according to the CoreLogic® Home Equity Report. CoreLogic reported the year over year (YOY) increase equaled 10.8% for homeowners with mortgages, a group that accounts for roughly 63% of all properties. The collective equity gain totaled $1 trillion since the third quarter of 2019 and marks the largest average equity gain since the first quarter of 2014. “Over the past year, strong home price growth has created a record level of home equity for homeowners,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The average family with a home mortgage loan had $194,000 in home equity in the third quarter. This provides an important buffer to protect families if they experience financial difficulties and is one reason for the generational low in foreclosure rates reported in September.”

Home equity gains are likely to continue over the next several months, fueled by strong purchase demand. Prices are also expected to keep rising, although the CoreLogic HPI Forecast shows home prices slowing over the next 12 months as new home construction and more existing for-sale homes ease supply pressures. CoreLogic believes this easing could
moderate the pace of both home price growth and equity gains. To find out more or if you would like to know your value of your home call me at 253.370.1947 or email at druvo@comcast.net. The time is now and we do not know how long this amazing selling market will last.