Home Equity Gives Sellers Options in Today’s Market

Dated: September 24 2020

Views: 7

Home Equity Give Sellers Options in Today’s Market | MyKCM

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.

According to the just-released Q2 Homeowner Equity Insights Report by CoreLogic:

“U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $620 billion since the second quarter of 2019, an increase of 6.6%, year over year.” 

Dr. Frank Nothaft, Chief Economist for CoreLogic, attributes much of the equity growth to rising home prices:

“The CoreLogic Home Price Index registered a 4.3% annual rise in prices through June, which supported an increase in home equity.”

As the map below shows, CoreLogic also indicates that home equity is increasing in every state:

“In the second quarter of 2020, the average homeowner gained approximately $9,800 in equity during the past year.”

Home Equity Give Sellers Options in Today’s Market | MyKCM

What Does This Mean for Sellers? 

When equity is rising, as it is today, you may have more invested in your home than you realize. Mark Fleming, Chief Economist at First American, notes:

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity. In today’s housing market, fast rising demand against the limited supply of homes for sale has resulted in continued house price appreciation.”

If you’ve been considering making a move – whether that’s to get into a bigger home or to downsize to a smaller one – it’s a great time to reach out to a real estate professional to learn how to put your equity to work for you. You may be in a position to pay that equity forward toward your next home purchase and afford it sooner rather than later.

Bottom Line

If you’re thinking of selling, let’s connect so you can take advantage of what the current market has to offer today.



The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.
Blog author image

Kathleen Comerford

Let The Comerford Group Be Your Key to Your Real Estate Success! I am a Broker and REALTOR, connecting buyers and sellers around the world. The Comerford Group is able to provide customers with excep....

Latest Blog Posts

Your 2021 Guide to Celebrating St. Patrick's Day in Sarasota & Bradenton

St Patrick's Day 2021 in Bradenton & Sarasota has a lot to offer for the week. There are several parades, concerts, and events going on in the Bradenton & Sarasota area.;

Read More

St. Patrick's Day treats are as satisfying as they are festive

St. Patrick's Day is finally here — which means it's time to cook up a delicious Irish feast! Sure, any green food can pass as festive on March 17, but how could a St. Paddy's

Read More

Relax & Breathe Deep with Outdoor Yoga

In the days of social distancing, you can still find plenty of ways to play in our beautiful and sunny region. Below you'll find a list of outdoor yoga venues to melt away the stress and enjoy the

Read More

Strawberries are in Season in Florida - Make February Berry Sweet

Looking for a sweet treat to make your holiday special? We've put together a berry sweet list for you to try. February is a great month to load up on strawberries! Check out the seasonal food guide

Read More