Many American homeowners can look back on 2016 as a year of growth. Specifically, growth in the amount of equity they now have in their home.
According to a report released by the Federal Reserve, the average American homeowner gained just over $12,000 in equity from September 2015 to September 2016. In some of the hot markets of the U.S., homeowners may have seen upwards of $25,000 in equity growth during that time frame.
Factors such as the low interest rates that continued to be available throughout 2016, coupled with the low inventory of homes for sale, drove the value of homes upward. In an article published in The Chicago Tribune by Kenneth R. Harney, additional factors for increased home values are detailed.
Harney goes on to suggest what homeowners with significant equity in their homes might choose to do with it. Homeowners who decide they want to tap into the equity instead of letting it continue to grow are advised to use the funds, which might be accessed via a home equity credit line, in a responsible manner such as home renovations, consolidation of credit card debt or student debt. Since rates are expected to rise in 2017, homeowners considering a HELOC as an option might want to act sooner rather than later.
Read the entire article for more details.
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Real estate sales figures and activity for the month of July 2016 have been released. Reports indicate July sales declined in comparison to both June 2016 and last July. In fact, sales were down in all but 4 of the major cities tracked in the study.
However, according to RE/MAX CEO and chairman of the board, it is important to note that, “After a June jump in home sales, it’s quite common to see July sales make a correction…” He goes on to emphasize in an article published by National Mortgage Professional Magazine written by Phil Hall, that there are still a few months left in the “traditional home-buying season” and the summer real estate sales pattern often fluctuates month to month.
Despite the fact that overall sales were down, the median price dropped only 1.3 percent from June 2016 but is still up 4.7 percent from July 2015. To add, the days on the market is down by a day from June 2016, and 4 days less than the figure from July 2015.
More good news to summarize the current state of the real estate market, overall prices are rising at a level consistent with historical average. To see more details on the July 2016 real estate sales, read the entire article.
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