As home prices continue to appreciate, many potential buyers and sellers aren’t sure what it really means for them. Of course, depending on which side of the fence you are on, it means a whole different thing. For those that own homes, the majority of the population, great news. As home prices
rise, family wealth increases. In fact, home equity is the single largest source of a family’s assets. In fact, according to this NBC Article,“Homeowners now have a collective $5.8 trillion in tappable equity, the highest volume ever recorded and 16 percent above the last home price peak in 2006. “.Now, I am not sure about the rest of you, but I don’t know many family’s whose savings have increased at the same rate. In fact, according to this recent article “Of the Americans who have savings accounts, the median savings account balance is $5,200.” Contrast that with a report from Corelogic that states: “California homeowners gained an average of approximately $51,000 in home equity” In just one year! So if you own a home in most of the US, you are sitting pretty right now.
Now for those that do not own a home, the financial situation is diametrically reversed. The longer they continue to wait, the more it is costing them in a couple different ways. To begin with, rents keep increasing, adding insult to injury. Not only are they throwing away money in rent, landlords always want more (ever heard of anyone lowering someone’s rent? No!). On top of that, home prices keep rising and so do interest rates. So the cost of waiting to buy keep biting renters and they will continue to pay the price for years to come.
Tired of renting and throwing your money out the window? Let’s get together to discuss building your wealth today! You may be surprised to find out how little you really need to get into your very own home!
