Supply and demand have affected home values, but the stock market hasn’t.
I’m here to talk about the stock market versus home values. Did you know that those two don’t always correspond? Today’s information will shed light on crucial data in our current volatile market.
Experts are calling for home prices to appreciate next year, although at a slower pace than the previous three years. The reason for this is simple: supply and demand are greatly affecting real estate and will continue to do so for many years to come. As for this year, there has been a significant imbalance between the number of homes available for sale and the number of buyers looking to make a purchase.
Over the past few years, home prices appreciated substantially. While rising inventory and mortgage rates have cooled the market in recent months, home prices nationally remain strong. That’s why, according to the latest Homeowner Equity Insights from CoreLogic, the average homeowner equity growth has been $60,000 over the last 12 months. While that is a national number, if you want to know what happened on average over the past year in your area, look at the map at 1:10 in the video. You’ll see that the equity growth in Ohio is around $28,000.
Lawrence Yun, the chief economist at the National Association of Realtors, helps explain why this matters so much today. He said, “The decline in the stock market has dented overall net wealth.” It has fallen by $6 trillion from the first to the second quarter. However, housing wealth has held on for homeowners, and this equity helps increase your overall net worth.
It can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you built up comes back to you in the sale, and that may be just what you need to cover a large portion, if not all, of the down payment on your next home.
What does all of this mean? There’s volatility in today’s stock market, but home equity is still incredibly strong. To help find out just how much equity you have in your current home, call me—I’d love to help you.