What Does The Current Home Price Appreciation Mean For Existing Homeowners?
Moving To Tucson? How Appreciation Provides Options
If you're preparing to sell your home this season, increasing prices are terrific news for you. But it is very important to comprehend why prices are rising to start with. One major element is supply and demand.
In any industry, when there are more buyers for an item than there are of that product offered, rates naturally increase. In those scenarios, purchasers are willing to pay more to get the services or product they're searching for when alternatives are scarce. And that's precisely what's occurring in the present property market.
Selma Hepp, Executive, Research & Insights and Deputy Chief Economist at CoreLogic, puts it like this:
“With so few homes, buyers are once again left with fierce competition that’s driving the share of homes that sold over the listing price up to 66% . . . With the continued imbalance between supply and demand, home prices are likely to have another year of strong gains and are expected to average about 10% growth for the year.”
Next Steps...
Because it will spend some time for real estate supply to increase, specialists think rates will continue rising. The most recent Home Cost Expectations Survey anticipates what will happen with house prices over the next 5 years. As the chart listed below programs, while the rate of appreciation will moderate over the next few years, prices will continue rising through 2026:
What This Implies When You Sell Your Tucson Home
If you're a homeowner, the projection for continued price gratitude this year opens up a chance to move. That's due to the fact that it may provide your equity a major increase. Equity is the distinction between what you owe on your home and its market price. The amount of equity you have boosts as you make your month-to-month payments and as increasing house costs drive up the market value for your home.
One other consideration that affects your monthly payments is a Tucson neighborhood HOA fee that is factored into the total monthly bills you have. If the HOA fee is high it is just like a price increase in the home.
Growing equity is an effective tool for house owners. The equity you've developed comes back to you in the sale when you offer your house. That money might be enough to cover some (if not all) of your down payment on your next house.
Of course, if you want to know just how much equity you have in your present house, it's important to work with a real estate specialist. They follow existing market trends and can help you comprehend your home's value when you're ready to get moving.
What This Implies for Your Next Purchase
However today's rising housing costs in the Tucson real estate market aren't simply good news if you're ready to sell. Because rising costs are anticipated to continue in the years ahead, you can rest assured your next house will be a financial investment that must grow in worth with time. That's one of several reasons property has been rated the very best investment in a current Gallup survey.
If you're interested in a low-stress, easy buying process, then click here and we can have a personal consultation where we can dive in, go over your goals and home buying needs and get you started off on the right foot.
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Glad you enjoyed the post and thanks for the feedback