One of the best things about the 2020 real estate market is that homeowner equity is high. CoreLogic recently released a report that stated that in almost every state there was a year-over-year 6.5% equity increase.
According to the report:
“CoreLogic analysis shows U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of nearly $590 billion since the first quarter of 2019, an increase of 6.5%, year over year.” (See map below):
“In the first quarter of 2020, the average homeowner gained approximately $9,600 in equity during the past year.”
That is a large amount of savings for homeowners. Especially for those looking to sell and move to a larger home. The growth in equity has given many owners the ability to cash out and re-invest that equity in a new home. This is a major driving factor in real estate.
Frank Martell, President and CEO of CoreLogic expresses that homeowners will get through the current recession much more positively than the last.
“Many homeowners will experience a recession during their lifetime, and it is reasonable to compare the current recession to those in the past. But the comparison is not apples to apples — every recession is different. Primary drivers of the Great Recession were an overbuilt housing stock, risky mortgages and the collapse of home prices, creating a massive increase in negative equity that proved difficult to recover from. Today’s housing environment has low vacancy and delinquency rates and a large home equity cushion.”
It is a great time to cash in on the equity of your home and to leverage it to get a larger home. If you are thinking about relocating, contact South Florida Real Estate Experts at Prestige Waterfront Realty at 954-830-7000.