THE ' GREAT NEWS ' ABOUT RISING PRICES
Recently there has been a lot of talk about home prices and if they are accelerating too quickly . In some areas of the country , seller supply ( homes for sale ) cannot keep up with the number of buyers out looking for a home , which has caused prices to rise .
The great news about rising prices , however , is that according to CoreLogic ’ s latest US Economic Outlook , the average American household gained over $ 11,000 in equity over the course of the last year , largely due to home value increases .
The map below was created from CoreLogic ’ s report and shows the average equity gain per mortgaged home over the past year .
For those who are worried that we are doomed to repeat 2006 all over again , it is important to note that homeowners are investing their new found equity in their homes and themselves , not in depreciating assets .
The added equity is helping families put their children through college , and even invest in starting small businesses , allowing them to pay off their mortgage sooner or move up to the home that will better suit their needs now .
Bottom Line CoreLogic predicts that home prices will appreciate by another 5 % by this time next year . If you are a homeowner looking to take advantage of your home equity by moving up to your dream home , let ' s discuss your options !
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