Follow Patrick Linkedin Facebook
Email Patrick Email
Financial
Aug 6, 2015

Increase In Housing Prices Have Sellers, Investors Smiling

Sponsored Content provided by Patrick Stoy - Mortgage Consultant/Owner, Market Consulting Mortgage

A report that was recently published by industry news insider CoreLogic shows that national home prices increased by more than 6 percent from June 2014 to June 2015. This is not exactly good news for first-time buyers, but for sellers and investors who got in prior to the appreciation, it’s definitely a reason to celebrate.

For investors, now could be the perfect time to lock in some gains and move on to the next property, especially considering that the recent data represents 40 months of consecutive increases in home prices nationwide. The strength of the housing market has returned.

People are buying homes again and the perception about the future is positive, or else we would not have witnessed nearly four straight years of appreciation. Anand Nallathambi, president and CEO of CoreLogic, expects the trend to continue because, “Pent-up buying demand and affordability, together with higher consumer confidence and a more robust labor market are a potent mix.”

In real estate, these conditions usually trigger an uptick in “move-up buyers,” people who decide to cash out their equity and apply it toward the purchase of a larger home. That has not been the case in recent years, however, and the experts at Fannie Mae believe this is due to people not having an accurate perception of the equity they have accumulated in their homes.

This has broader implications, because according to the National Housing Survey put out by Fannie Mae, homeowners who are underestimating how much equity they have in their homes may also be underestimating about how much of a down payment they could make with their equity; about their chances of qualifying for a mortgage; and their opportunities for selling their house and buying another one. 

Basically, the experts seem to agree that there has to be some explanation for why people are remaining in their current homes and choosing to do nothing with the equity they have built over the years. After all, why wouldn’t you sell and move into a nicer place if the equity would allow you to keep your payments and remaining principal at approximately the same amount?

Maybe the experts have not considered the idea that people like their current situation or simply don’t want to move. Seems like a fairly obvious reason for why people are opting to remain in their homes and keep their equity, instead of a lack of confidence about the housing market or a lack of awareness about the amount of equity they have in their homes.

The chance to build equity is one of the foremost reasons why homeownership is one of the most effective strategies for acquiring wealth and achieving long-term financial stability.

Having equity provides a range of options. For those who disdain the idea of moving and prefer to remain in their current homes, having equity can facilitate renovation projects that could have only been dreamed about in the past. It can also provide a variety of methods for debt consolidation.

To find out how much equity you have in your home, please contact me. 

Patrick Stoy has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.

Other Posts from Patrick Stoy

Mcm 14jan insight
Ico insights

INSIGHTS

SPONSORS' CONTENT
Christy2

Is Your Roof Absorbing Water?

Christy West - Roof Rescue of Wilmington LLC/Roof Maxx
Chris coudriet

County Zoning Gets Full Revamp After 50 Years

Chris Coudriet - New Hanover County Government
Jasonpathfinder3

Where to Live in Retirement Part 1: Considerations

Jason Wheeler - Pathfinder Wealth Consulting

Trending News

Delay Hospital Vote, Say NHRMC Medical Staff Members

Vicky Janowski - Aug 15, 2019

Wanda Coley Moves To UnitedHealthcare; Well Care Names Interim COO

Christina Haley O'Neal - Aug 15, 2019

Ulta Beauty Leases Space At Independence Mall

Cece Nunn - Aug 15, 2019

Castle St. Redevelopment Proposal Back On The Table

Christina Haley O'Neal - Aug 16, 2019

Amid Bankruptcy, Bevello Clothing Stores Shut Down, Including Mayfaire's

Cece Nunn - Aug 16, 2019

In The Current Issue

Advocating For Realtors

Anne Gardner, the new CEO of Cape Fear Realtors, talks about her role leading one of the region's largest trade associations....


Battleship Opens New Tour Section With Food Focus

An area landmark has a new tool for providing insight into the daily lives of the men who served aboard the World War II vessel....


ILM Passenger Numbers Trending Up

The number of travelers using the growing Wilmington International Airport has soared each month in 2019 compared to the same month the prev...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

WILMA's Leadership Accelerator
Power Breakfast - The H Word (June 13, 2019)
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`