Home Equity Gains Reached New Highs in 2021
What is home equity? Home equity is the current value (what you could sell your home for) minus the balance (or what you owe) on a home loan.
If you paid cash, or do not have a mortgage, your home equity equals the current value of your home.
Home prices are continuing to increase, which is great for home sellers allowing for more equity gain.
Per CoreLogic, for the third quarter of 2021:
Average annual equity gain of $56,700 per homeowner in Q3 2021 was more than three times the gain from a year earlier.
National negative equity share was 2.1% Q3 2021, the lowest in more than 12 years.
A foreclosure crisis is not imminent:
“In contrast to the financial crisis, when roughly 25% of borrowers were underwater, most borrowers today who are behind on mortgage payments can tap into their equity and sell their home rather than lose it through foreclosure.” – CoreLogic
Per the latest Homeowner Equity Insights from CoreLogic, the average homeowner’s equity has grown by $56,700 over the last 12 months.
The equity gain many homeowners are experiencing, can make it a fantastic time to sell! Those sellers looking to take advantage of the great seller’s market could find themselves selling at an opportune time.
If you’re thinking of selling (or buying) in Naperville or any of the west, southwest or northwest Chicago suburbs, let’s chat!
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