What Improving Home Values May Mean for You
Although all areas are different, we have been seeing a fairly widespread trend of increasing home values. According to the most recent data from the real estate analytics firm CoreLogic, home prices nationally increased 5.7 percent year-over-year as of June. More importantly, the data also forecasts a price increase of 5.3 percent between June of this year and June 2017.
So what does this mean for you? Whether you’re looking to buy, sell, refinance, or tap into your equity, the rise in prices—which equates to a rise in values—is good news.
What improving values mean for sellers: First and foremost, a rise in home values means that a home seller may be able to sell their home for more. Many homeowners may be able to use an increase in value to “buy up” into a larger home. For some homeowners who may have seen their home lose value over the last few years, an increase in value may mean that they can sell without taking a loss.
What improving values mean for buyers: Although it may seem counterintuitive that a rise in prices and values can benefit buyers, it certainly can in the long run. If a potential buyer is looking to buy within the next few months, they will still be able to take advantage of any increase in home values—such as the forecasted 5.3 percent rise—going forward, as well as any future increases beyond next year.
What improving values mean for those looking to refinance: Interest rates have been near record-lows lately. Combine that with a potentially higher home appraisal on a refinance (due to a higher home value) and you may be looking at a much better refinancing opportunity. Also, if your home appraises for more, there may be more refinancing products available to you due to an increase in your loan-to-value ratio.
What improving values mean to those looking to use their equity: If you want to use your home equity for remodeling or making upgrades to your home, rising home values mean that you’ll have more equity to draw from. You can also use an increase in equity to help you consolidate personal debt, invest in other opportunities, make a major purchase, or help fund your child’s education.
As mentioned above, all markets—regions, cities and even neighborhoods—are different. An increase in values in one area doesn’t mean an equal increase in values in another area or even any increase at all. However, if current forecasts are correct, the upward trend in values could extend to most areas in the very near future.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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