Rising home prices are good news if you are planning to sell your home this year. Understanding why they are rising may help you realize the full benefit of this trend, including the increased equity in your home right now.
Supply and Demand
When there are more buyers for a product than supply available, prices will increase because buyers are willing to pay more for the item. Right now, there are fewer homes available than buyers wanting to invest in this commodity. In fact, recent pricing trends pushed prices up to 66% in some parts of the country. With the short supply of homes expected to continue, home prices will see an average of 10% growth this year.
Experts believe home prices will continue to rise over the next 5 years because it will take time for the housing supply to catch up with demand. The latest Home Price Expectations Survey shows home prices up 9% this year; 4.74 in 2023; and 3.41% by 2025.
This means it may be the right time to sell
The continued price increases into the near future may open an opportunity for you because it will give your equity – or the difference between what you owe and your home’s market value — a significant boost. Your equity increases as you continue to make your mortgage payments and market value improves on your home.
Rising equity is a huge benefit for you if you’re selling your house because it will come back to you in the sale. That profit could be your down payment on your next home.
Our Homes and Lakeshore team can help you pinpoint the potenial equity you have built up in your home because we follow current market trends. Always work with a professional to get the most out of your home sale.
Your home is a long-term investment
Rising home values will benefit you over the long haul, too. Since the price appreciation is expected to continue into the future, your home will be an investment that will grow for years to come.
The bottom line
Consider your equity if you’re weighing whether you should sell your house this season. It may be the opportunity you need to make your move.