One thing helping homeowners right now is price appreciation, especially in the entry-level market. In the latest Home Price Insights report, CoreLogic reveals how home prices increased by 4% year-over-year and projects prices will rise 5.2% by December 2020.
Why is this good news for the homeowners?
When prices appreciate, homeowners gain equity. In addition, those planning to sell this year, especially in the entry-level market, can potentially earn a substantial profit.
Dr. Frank Nothaft, Chief Economist at CoreLogic, says:
Moderately priced homes are in high demand and short supply, pushing up values Homes that sold for 25% or more below the local median price experienced a 5.9% price gain in 2019, compared with a 3.7% gain for homes that sold for 25% or more above the median.
As Dr. Nothaft indicates, the lack of inventory continues to drive home price growth. This means theres a high demand for homes in this tier of the market, making it a great time to consider using your equity to move up to a bigger or more premium home.
When you upgrade your home, you may be able to find the amenities or features youve dreamed of such as a yard to plant or garden in with your family this spring, or more outdoor space for entertaining this summer. Maybe its the master bath youve always hoped for, or a garage to finally park your car inside.
Whatever you choose, if youre moving out of an entry-level house, youre likely going to be in the drivers seat as a seller.