Real Estate Blog!

Home Equity Give Sellers Options in Today’s Market

Homeownership is one of the best ways to invest in your financial future, especially as your home equity grows. Home equity is a form of forced savings that can work to your advantage as the value of your home appreciates. Across the country, home equity was increasing before the health crisis swept our nation, and it continues to grow throughout the year, giving sellers powerful options in this market.

Arizona Home builders are back to starting new builds, data shows Homebuilding starts increased to it's highest level in Years. This is a good sign for the construction industry. 

The Cost of a Home Is Far More Important than the Price

There are several factors that influence the cost of a home in Arizona.  The two major ones are the price of the home and the interest rate at which a buyer can borrow the funds necessary to purchase the home.

Earlier this year, many economists and market analysts experts were predicting an apocalyptic financial downturn that would potentially rattle the U.S. economy for years and years. They immediately started to compare the economic recovery to the Great Depression of a century ago. Six months later, the economy is still trying to stabilize in Arizona, but it is evident that the country will not face the total devastation projected by some. As we continue to battle the pandemic, forecasts are now being revised upward. The Wall Street Journal (WSJ) just reported:

Some Highlights

• Buyers are actively searching for and purchasing homes at a record-breaking pace. According to the latest report from the National Association of Realtors (NAR), in July, 68% of homes were on the market for less than a month.
• With homes moving from listing day to pending sale in an average of just 22 days, it’s a great time to sell a house.
• Let’s connect today so you can make your move while buyers are scooping homes up faster than they’re coming to market.

Real estate continues to be called the ‘bright spot’ in the current economy, but there’s one thing that may hold the housing market back from achieving its full potential this year: the lack of home inventory.

Earlier this year, realtor.com announced the release of the Housing Recovery Index, a weekly guide showing how the pandemic has impacted the residential real estate market. The index leverages a weighted average of four key components of the housing industry by tracking each of the following:

How long have you lived in your current home? Do you have home equity? If it’s been a while, you may be thinking about moving. According to the latest Profile of Home Buyers and Sellers by the National Association of Realtors (NAR), in 2019, homeowners were living in their homes for an average of 10 years. That’s a long time to time to be in one place, considering the average length of time homeowners used to stay put hovered closer to 6 years.

There has been much talk around the possibility that Americans are feeling less enamored with the benefits of living in a large city and now may be longing for the open spaces that suburban and rural areas in Arizona provide.

Some Highlights