There has been quite a bit of chitchat regarding the rate at which home prices have been rising. As previously mentioned, the vast majority of the US is experiencing a distinct home supply shortage. This of course means that Buyer Demand is far outpacing current Seller Supply.

If you are at all familiar with Supply and Demand economics, this phenomenon is undoubtedly attributing to home price increases. The great news about rising home prices is revealed in CoreLogic’s US Economic Outlook. The latest data available(June 2015 – June 2016) notes that the average American household actually  gained over $11,000 in equity, due largely to home value increases.

For the “gloom and doomers” out there touting they we are moving towards another 2006 type market crash, please note that homeowners’ attitudes have changed and they are now investing their new-found equity into their homes and not into depreciating assets. The $11,000 in average equity gained is helping US families put their children through college, start small businesses, pay off their mortgages sooner or move up to a home that better meets their families current needs.

The Takeaway

The current prediction is that US home prices will appreciate by an average of 5% over the next year, as reported by CoreLogic.

If you are a homeowner looking to take advantage of your home equity and move up to your dream home, call or text me today at 727.755.3434 and I would be glad to discuss your options!!

** Please note that data and statistics quoted above are national.  Always consult a competent real estate practitioner familiar with your local market **