Core Logic released its National Homeowner Equity Insights Report for 2018 and the good news is that most homeowners are emerging from the negative equity trap!
What’s going on?
Over the last year alone, homeowners with mortgages (63%) have seen their equity increase by 12.3%. This equates to a gain of nearly $981 billion since the second quarter of 2017!
This news isn’t just applicable to strong housing markets such as California (although they did see an average of approximately $48,000 in equity gain) this is a nationwide trend.
“Negative equity levels continue to drop across the US with the biggest declines in areas with strong price appreciation,” explains Frank Martell, CEO of Core Logic. “Further, the relatively low level of shadow inventory contributes to the chronic shortage of housing supply and price increases in markets.
So what does this mean for homeowners and buyers?
In a nutshell, it’s a great time to sell. With property values appreciating and equity increasing you can almost guarantee a great return on your investment if you sell in today’s market.
For buyers it’s a little more of a double edged sword. With low inventory it is proving increasing difficult for buyers to find their home in this competitive market. On the plus side we still have interest rates on our side, and right now would be a great time to lock in a low rate. We predict an increase of the interest rate by the end of the year, which could cost you significantly more over the course of a typical 30 year loan. You heard it here first!
If you have any questions about buying or selling in Central Florida get in touch! We’d love to help!