If buying or selling a home has been a part of your dreams, there is no time like the present! Current homeowners have seen a huge boost in their net worth over the past few years thanks to rapidly rising home prices. This may seem discouraging to home buyers, but in reality, you may be doing yourself a disservice by waiting to buy. Here are a few reasons why you should kick your Real Estate goals into gear as we enter the new year:
Homeowners Have had Positive Equity Gains over the Past 12 Months
Attention homeowners! It is time to celebrate because the value of your homes have been skyrocketing, giving your net worth a major boost. But how did this happen? Well, there were more buyers on the hunt for a new home than there were homes available for sale, which caused home prices to rise substantially.
While the market has slowed down towards the end of 2022, according to the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has actually grown by a whopping $34,300 over the past 12 months!
Even though you may have seen some scary headlines, the average homeowner has gained positive equity in almost every market. While the gains may not be as dramatic as they were in the previous quarter, they are still significant. If you have been in your home for more than a year, it is likely that you have even more equity than you realize.
But wait, there is more! This national average is just that – an average. If you want to see what has happened in your specific area over the past year, check out this map from CoreLogic:
Now, why is all of this so important right now? Well, equity not only 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 have built up comes back to you in the sale and can be used as a down payment on your next home.
If you have been hesitant to sell because you were not sure what the headlines meant for your bottom line, rest assured that you have still gained equity and it can help fuel your next move. If you are planning to make a move, the equity you have gained over time can make a big impact. To find out how much equity you have in your current home and how you can use it, connect with Michele Harmon Team at 713-818-1330 today!
Reasons to Jump on the Homeownership Bandwagon, Even with Rising Home Prices
Why pay off someone else’s mortgage when you can build your own equity and wealth through homeownership? Equity is like the cherry on top of homeownership – it is the extra value you have in your home beyond what you owe on your mortgage. It is like a financial high five for all your hard work paying off your loan! You definitely can not get this financial benefit when renting.
Potential Tax Benefits
Owning a home can come with some sweet tax benefits – mortgage interest and property taxes are usually tax-deductible, which can help lighten your overall tax load. In Texas, homeowners can also file for the Homestead Exemption on a primary residence.
Pride of Ownership
There is a sense of pride that comes with owning your own home. You have the freedom to decorate and make changes as you see fit. As a homeowner, you will need to budget for things like repairs, maintenance, and property taxes, but it is all worth it for the sense of pride that comes with owning your own space.
Potential for Appreciation
While there is no guarantee, past trends show that home values generally increase over time. This means that if you buy a home, it could potentially be worth more in the future, providing a financial benefit. It is like investing in your future, and who does not enjoy the profits from a good investment? Plus, you get to live in a cozy, comfortable home while you wait for it to potentially appreciate in value. Talk about a win-win!
The Bottom Line
If you are a home buyer or seller, it is important to stay in the know about what is happening in your local housing market. After all, knowledge is power! That is why you should give Michele Harmon Team a call at 713-818-1330. We can discuss your Real Estate goals and help you make the most informed decision possible. Plus, we will give you the scoop on what is happening in your neighborhood, so you can ensure now is the best time to make your move. Do not let a lack of information hold you back – give us a call and let’s get your Real Estate journey started!