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Home Prices On The Rise, What’s That Mean For YOU

As home prices rise and supply of homes for sale decreases, many people are left wondering what will happen to the market. The spike of home prices and value leaves some concerned. Home prices on the rise, what’s that mean for you?

There has been some skepticism regarding if it’s sustainable. In most areas of the country supply of homes for sale has been extremely low. Buyer demand is heavily outweighing seller supply. Which naturally causes home prices to go up.

Many Homeowners Have Experienced an Increase in Home Equity!

The great news about rising prices is that according to CoreLogic’s US Economic Outlook, the average American household gained over $11,000 in equity over the course of last year. This is largely due to home value increases.

Furthermore homeowners are investing their recently acquired equity back into their homes and themselves. Not into depreciating assets. The added equity is also assisting families with putting their children through college, starting a small business or allowing them to pay off their mortgage sooner. Some homeowners are even taking the smart route and moving up to a home that will better suit their needs now.

But Will 2006 Repeat Itself?

In conclusion, for those who may have been worried that we were doomed to repeat 2006 all over again. It’s important to note that the rising home prices and increased home equity is a good thing. People are able to sell their homes for top dollar, increasing market value around the country.

Home Equity Anticipated to Increase ANOTHER 5% by Next Year!

The greatest news is that CoreLogic predicts home prices will appreciate by another 5% by this time next year. If you are a homeowner looking to take advantage of your home equity, give us a call at 201-851-1781 or smischel@kw.com. Take advantage of our FREE HOME SELLERS GUIDE today!