Why Volusia County Homeowners Have Selling Power in Today's Market
Listen up Volusia County homeowners, this info is for you! It's understandable that the Covid19 crisis may have you weary of whether or not you should sell your home, but the truth is, it's a fantastic time to sell! Here's why:
We’re sitting in an optimal moment in time for homeowners who are ready to sell their houses and make a move this year. Today’s homeowners are, on average, staying in their homes longer than they used to, and this is one factor driving increased homeowner equity. When equity grows, selling a house becomes increasingly desirable. Here’s a breakdown of why it’s a great time to capitalize on equity gain in today’s market.
As average homeowner tenure lengthens and home prices rise, equity, a form of forced savings, can be applied forward to the purchase of a new home. CoreLogic explains:
“Over the past 10 years, the equity position of homeowners has positively changed as a result of more than eight years of rising home prices. As the economy climbed out of the recession in the first quarter of 2010, 25.9% or 12.1 million homes were still underwater, compared to the first quarter of 2020 when the negative equity share was at 3.4%, or 1.8 million properties. Borrowers have seen an aggregate increase of $6.2 trillion in home equity since the first quarter of 2010 and the average homeowner has gained about $106,100 in equity.”
Increasing equity is enabling many homeowners who are ready to sell their current houses today to sell for an increased profit, and then reinvest their earnings in a new home. According to the Q2 2020 U.S. Home Sales Report from ATTOM Data Solutions, in the second quarter of 2020:
“Home sellers nationwide realized a gain of $75,971 on the typical sale, up from the $66,500 in the first quarter of 2020 and from $65,250 in the second quarter of last year. The latest figure, based on median purchase and resale prices, marked yet another peak level of raw profits in the United States since the housing market began recovering from the Great Recession in 2012.”
Of course, these are national figures, but the numbers here in Volusia County tell the same story. Home values in Volusia County have been appreciated at roughly 10% year over year for the last several years. That means, if you purchased a house for $150,000 in 2015, your home could be worth over $240,000 in today's market!
Determining your equity position is a great place to start if you’ve been thinking it might be time for you to make a move. Home values have been steadily increasing, inventory is low, and buyers are serious about purchasing! If you're thinking about selling your house, let's connect today so you can better understand your home equity position.