Tami Savage, Realtor

Florida Real Estate

Two Important Impacts of Home Equity

By Tami Savage

Two Important Impacts of Home Equity

Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 in equity over the past year. In addition, experts project 2020 home prices to continue rising. With prices going up, equity gains will also keep accelerating. Black Knight just reported:

“The annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”

Jeff Tucker, Senior Economist at Zillow, just qualified recent price increases as “jaw-dropping” and “within a hair’s breadth of double-digit year-over-year appreciation.”

Knowing equity will help enable many homeowners to better survive the economic distress caused by the ongoing pandemic, it’s important to break down two key homeowner benefits of increasing equity.

1. Equity Increases a Homeowner’s Options to Buy a New Home

Aside from the financial damage of the last seven months, there has also been a tremendous emotional toll on many people. Shelter-in-place mandates, quarantine requirements, and virtual schooling have all made us re-evaluate the must-have requirements a home should deliver. Having equity in your current house gives you a better opportunity to move-up or build your perfect home from scratch.

Mark Fleming, Chief Economist at First American, recently explained:

“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”

If you need to make a move, the equity in your current home can help make that possible – right now.

2. Equity Enables Homeowners to Help Future Generations

An increase in home equity grows overall wealth, which can transfer to future generations. The Federal Reserve, in an addendum to their recent Survey of Consumer Finances, explains:

“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”

The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:

“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”

Bottom Line

Equity can help a homeowner grow their confidence in a more stable financial future. It provides near-term move-up options and creates a positive impact for future generations. In many cases, the largest single investment a person has is their home. As that investment appreciates in value, financial options increase too.

How to Prepare for a Bidding War [INFOGRAPHIC]

By Tami Savage

How to Prepare for a Bidding War. 55% of August 2020 home sales resulted in a bidding war. AND 69% of homes sold were on the market for less than a month. With so few houses available today, competition is heating up among homebuyers. Be ready for a bidding war with these 3 tips. (1) Get Pre-Approved. A mortgage pre-approval shows that a loan officer has reviewed your finances and determined your ability to get a home loan. Pro Tip: Only 44% of today's propsective homebuyers plan to apply for pre-approval when beginning their home search. Pre-approval helps you stand out as a qualified buyer. (2) Know What You Can Afford. Be prepared to cover mortgage expenses beyond your mortgage, like general upkeep, utitilities, and other unexpected repairs. Pro Tip: Getting serious about your budget now means you'll have more money for a down payment and a clear idea on your maximum offer price. (3) Make Your Best Offer. On average, there were over 3 offers for every home sold in August. If your offer isn't competitive, it probably won't be considered. Pro Tip: Your real estate agent can help you determine what factors might make your offer more enticing, like: Flexible Move-in Dates, A Competitive Offer Price, or Minimal Contingencies. Being prepared means you'll be able to move quickly and confidently in today's competitve market. Sources: NASDAQ, National Association of Realtors, Bank of America, Realtor.com

Some Highlights

  • With so few houses available on the market today, being ready for a bidding war is essential for prospective homebuyers.
  • From pre-approval to making your best offer, here are three tips to make sure you can act quickly and confidently when you find the perfect home.
  • Let’s connect today to be sure you have the guidance you need as the competition for homes heats up this season.

Thinking of Moving? [INFOGRAPHIC]

By Tami Savage

Thinking of Moving? If you're ready to sell your house but you're worried about finding one to move into, why not invest in a brand-new home built just for you? Consider: Optimal floor plans, Ideal location, Tailored details, and its brand new! Newly built homes fit your changing needs with ... Thoughtful floor plans (like home gym, pool, multi-purpose/bonus room, home office, primary bedroom with ensuite bathroom), convenient neighborhoods (like parks, outdoor restaurants, exercise paths, lagoon, high-speed Wi-Fi), custom features (like smart home panels, energy star appliances, central air conditioning, heated floors & driveways, high ceilings, cabinet lighting, custom shelving, solar panels). If you're thinking of making a move, let's connect to see if a newly built home is exactly what you need. Source: Zillow, Moving.com, Realtor Magazine.

Some Highlights

  • If you’re ready to sell your house but you’re worried about finding one to move into, why not invest in a brand-new home built just for you?
  • New construction is on the rise, so it’s a great time to think about a custom home to fit your family’s changing needs.
  • Let’s connect today to discuss how to sell your house while buyer demand is high and find you a new home to call your own while you’re at it.

Rising Home Equity Can Power Your Next Move [INFOGRAPHIC]

By Tami Savage

Rising Home Equity can power your next move. Across the country, today's homewoners are gaining signiicant equity. $9,800 is the Average equity gained by homeowners over the past year. $620 billion is the total year-over-year euqity gain by U.S. homeowners. 6.6% is the year-over-year percentage increase in total home equity. Home Equity is growing in every state. in Florida we've seen a $10,000 increase. If you've been considering making a move, it's a great time to pay that equity forward toward your next home purchase. You may be able to afford your dream home sooner rahter than later. Based on U.S. Homewoners with mortgages (roughly 63% of all properties). Source: CoreLogic / Q2 Data

Some Highlights

  • According to CoreLogic, homeowners across the country are gaining significant equity.
  • Over the past year, the average homeowner gained $9,800 in equity, growing their overall net worth.
  • If you’re ready to sell your house and begin looking for your dream home, let’s connect to plan how your equity can make that possible.

Buyers Are Finding More Space in the Luxury Home Market

By Tami Savage

Buyers Are Finding More Space in the Luxury Home Market

A year ago, additional space and extra amenities had a very different feel for homebuyers. Today, the health crisis has brought to light how valuable more square footage and carefully designed floorplans can be. Home offices, multi-purpose rooms, gyms, and theaters are becoming more popular, and some families are finding the space they need for these upgrades in the luxury market.

The Institute for Luxury Home Marketing (ILHM) explains:

“With quarantine concerns still top of mind for many luxury buyers, we see large, sprawling estates making their comeback.

For instance, the last six months have seen a resurgence in the buying of mega mansions and estate-size homes – specifically properties that offer space (both inside and outside), separate home offices, gyms, and private amenities such as swimming pools, yoga studios, and recreation rooms.”

This was not the case at this time last year, as the most recent Luxury Market Report from ILHM emphasizes:

“Exactly one year ago, we reported that demand for large properties, mega mansions, private estates, and luxury ranches had reduced significantly over the previous few years; especially from the younger generation of luxury property buyers.”

For today’s buyers looking for larger homes, steady increases in equity might be what makes a move possible. Leveraging home equity makes it easier to afford the down payment on a luxury home, and current low-interest rates are making mortgage payments more affordable than they have been in years. The report from ILHM also notes:

“Luxury real estate prices may continue to strengthen further into the third quarter, as the affluent continue to see large investment returns from the currently strong stock market.

Coupled with the low interest rates, the policies granting (and insisting) on working from home implemented by many employers, and the concerns of the pandemic, all translate to the affluent increasingly trading in their city lifestyle for a home that has it all.”

Clearly, today’s strong gains in home equity paired with record-low interest rates make fall a great time to move up into the luxury market to meet those changing needs.

Bottom Line

If you’re ready to gain some breathing room in a larger home, let’s connect so you have the guidance you need to find more space in the luxury home market.

Why Selling this Fall May Be Your Best Move

By Tami Savage

If you’re thinking about moving, selling your house this fall might be the way to go. Here are four highlights in the housing market that may make your decision to sell this fall an easy one.

1. Buyers Are Actively in the Market

ShowingTime, a leading real estate showing software and market stat service provider, just reported that buyer traffic jumped 60.7% compared to this time last year. That’s a huge increase.

It’s clear that buyers are ready, willing, and able to purchase – and they’re in the market right now. In many regions of the country, multiple buyers are entering bidding wars to compete for the home they want. Take advantage of the buyer activity currently in the market so you can sell your house in the most favorable terms.

2. There Are Not Enough Homes for Sale

In the latest Existing Home Sales Report, the National Association of Realtors (NAR) announced that there were only 1.49 million units available for sale. That number was down 18.6% from one year ago. This means in the majority of the country, there aren’t enough homes for sale to satisfy the number of buyers.

Due to the health crisis, many homeowners were reluctant to list their homes earlier this year. That will change as the economy continues to recover. The choices buyers have will increase going into the new year. Don’t wait until additional sellers come to market before you decide to make a move.

3. The Process Is Going Quickly

Today’s ultra-competitive environment has forced buyers to do all they can to stand out from the crowd, including getting pre-approved for their mortgage financing. This makes the entire selling process much faster and simpler, as buyers know exactly what they can afford before shopping for a home. According to the latest Origination Insights Report from Ellie Mae, the time needed to close a loan is just 49 days.

4. There May Never Be a More Important Time to Move

You’ve likely spent much of the last six months in your current home. Perhaps you now realize how small it is, and you need more space. If you’re working from home, your children are doing virtual school, or you just need more space, your current floor plan may not work for your family’s changing needs.

Homebuilders are beginning to build houses again, so you can choose the exact floor plan to match what your family needs, and you can make sure the outdoor space is what you want too.

Bottom Line

The housing market is prime for sellers right now, so let’s connect to get the process started this fall. If the timing is right for you and your family, the market is calling your name.

Let’s Connect

727-282-4390 (mobile)

Let me help you buy or sell your next home!

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