According to Homeowner Equity Insights by CoreLogic, the average growth in Ohio’s home owner’s equity was $27,000 between the first quarters of 2021 and 2022. This growth was fueled by increased buyer interest in home ownership with a continuing low supply of inventory. The national average gain was $64,000, one of the highest one-year gains in recent history.
More Opportunity with Rising Equity
While news of inflation and rising interest rates might be casting a cloud on potential buyers’ goals, current home owners could find they’re in a position of opportunity. Do you know your current equity situation? Home equity is the current value of your home minus the amount you owe. You’re looking for a positive number. Gain comes from paying down the principal balance on your loan and an increase in market value over time. With a surge in equity growth, you’re in a position to use that money toward a new home – whether that’s upsizing or downsizing.
You receive that equity back in the form of what you get for selling your home. Maybe your equity gain allows you to cover most or all of a down payment on a new home. Home equity gain definitely gives you more options with regard to where you live.
Put Interest Rate News in Perspective
It’s true that rising interest rates will curtail the buying power of many people looking for homes. They’ll need to spend more for a home in a price range that is less than what they might have previously wanted. This in turn will mean that housing prices are unlikely to keep rising at the rates they were in the past couple years. But millions of people still need homes and we’ve not yet seen a significant increase in inventory. So, if you’re sitting on the fence about selling, it may be time to look at how much equity you have to fuel your options to move.
What is Your Home Value?
Calculating home equity requires knowing your home value. You can look at public records of homes sold in your neighborhood in the past six months to get a sense of price. But sold prices of other homes won’t necessarily be accurate for your own home. A qualified Realtor performs an in-depth comparative market analysis tailored specifically to your home and presents data that points to the fair market value. They can even help you calculate your net gain from the sale of your home.
Interested to know what your home is worth? Contact Platinum Service Realty for a free consultation 513.229.2088.
Real Estate Term of the Week
Comparative Market Analysis (CMA):The goal of a CMA is to estimate the value of a home for sale relative to comparable properties in the area. A real estate agent will look at recently sold homes within a specific location; examine size, interior and exterior features, and other factors; and run the data through various tools to reach a fair market value.