Time in The Market – What’s Your Home’s Equity?.
Time in The Market – What’s Your Home’s Equity?
The fourth quarter is here and with it the last wave of buyers for the year. It’s the time when corporate relocations and new arrivals into town are looking for their home in time to get the tax benefit it brings for this fiscal year. It’s also when the locals are selling in order to move to the right size home.
One common reason to not list your home in the fourth quarter is that guests will arrive for the holidays and the home should be in mint condition. So, if you still want to be in your new home before the end of the year ask your agent to not have any showings on the days where you’ll have guests. No reason to put off your move. You may have to change plans on where to spend Thanksgiving though, because homes that are priced at fair market value are selling quickly, usually within 60 days in our market.
According to Lawrence Yun, Chief Economist of the National Association of Realtors “The primary driver in the increase in sales is more homeowners realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize”. There is positive equity nationwide with 92% of the homes. Further, there is “significant equity” in 74% of the homes in The United States. Those are homes that have greater than 20% equity according to Fannie Mae & CoreLogic.
Many owners do not realize how much equity has built up and are holding back on moving because of that perception. The median years of homeowner tenure before moving has risen from 6 to 9+ years in the country (Forbes). This is creating a natural pent-up seller demand and the trend seems to have settled at 9+ years. How long have you been living at your current home? The question really is where do you want to live next? The market is stable and you should be able to find what you’re looking for next.
Have house prices surpassed their pre-2008 peak? Not in Florida where we still are 18% below that mark. California is 6% below and New York is at 3% below. There is some room to grow and it looks like we’ve leveled off on our property appreciation. A Home Price Expectation Survey done in 3rd quarter of 2016 projects an 18.7% Cumulative House Appreciation by 2020.
There is reason to celebrate the stability in the market and the time that you have been in the market. Many of us have enjoyed an increase in equity and are now in position to reap the rewards of hanging in there when the times were tough. Not that long ago, was it?
You can breathe easily and make decisions on where to move to with a reasonable expectation to get that accomplished before years’ end. Happy fourth quarter to you!
Frank DeValdivielso, a member the Miami FL Team and The Keyes Company, is based out of 2423 Le Jeune Road, Coral Gables, FL 33134. For more information you can reach Frank at his office, 786.378.8450, or cell: 786.273.8507. You can also email him at RealEstate@MiamiFLTeam.com and please be sure to visit www.MiamiFLTeam.com for the latest listing and news regarding real estate.