Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from CoreLogic, the average homeowner gained $9,800 in equity over the past year. In addition, experts project 2020 home prices to continue rising. With prices going up, equity gains will also keep accelerating. Black Knight just reported:
“The annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.”
Jeff Tucker, Senior Economist at Zillow, just qualified recent price increases as “jaw-dropping” and “within a hair's breadth of double-digit year-over-year appreciation.”
Knowing equity will help enable many homeowners to better survive the economic distress caused by the ongoing pandemic, it’s important to break down two key homeowner benefits of increasing equity.
1. Equity Increases a Homeowner’s Options to Buy a New Home
Aside from the financial damage of the last seven months, there has also been a tremendous emotional toll on many people. Shelter-in-place mandates, quarantine requirements, and virtual schooling have all made us re-evaluate the must-have requirements a home should deliver. Having equity in your current house gives you a better opportunity to move-up or build your perfect home from scratch.
Mark Fleming, Chief Economist at First American, recently explained:
“As homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home – the wealth effect of rising equity.”
If you need to make a move, the equity in your current home can help make that possible – right now.
2. Equity Enables Homeowners to Help Future Generations
An increase in home equity grows overall wealth, which can transfer to future generations. The Federal Reserve, in an addendum to their recent Survey of Consumer Finances, explains:
“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”
The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:
“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children's educational success by paying for college or private schools, which can in turn increase their children's ability to accumulate wealth.”
Equity can help a homeowner grow their confidence in a more stable financial future. It provides near-term move-up options and creates a positive impact for future generations. In many cases, the largest single investment a person has is their home. As that investment appreciates in value, financial options increase too.
David Deem 714-997-3486 Dave@DeemTeam.com Whether you have moved into a brand-new house or to one that previously belonged to another family, you need to put some precautions in place. Here are several items that need your attention to keep you and your family safe. Change the locks The previous owners may have passed on spare keys to their neighbors, relatives or close friends. Even if it’s a brand-new house, the builder may have handed a key to a handyman or worker during the construction stage. To be safe, get all the locks changed and distribute spares only to those you trust. Install a security system Even in safe neighborhoods, a security system is a good precaution to take. You can decide whether you want a high-tech one with all the bells and whistles, or if you’re happy with a few cameras and security lights. Get to know your neighbors Neighbors are invaluable allies. Stop by for a chat and get to know them. They can easily keep an eye on your place but if
David Deem 714-997-3486 Dave@DeemTeam.com Every parent knows the importance of keeping their kids active. In addition to instilling a healthy lifestyle, it also makes your life a whole lot easier after they’ve spent time burning all of their energy. When the weather’s nice, it’s easy enough for the little ones to run around outside, however, that’s not always an option. For this reason, here are a few playroom ideas that can keep the kids busy all year round. Indoor Jungle Gym As they progress from crawlers to climbers, being able to hone their fine motor skills is a crucial part of their development. Fortunately, there are some wonderful children’s furniture companies that specialize in exactly this and offer high-end options for indoor jungle gyms, monkey bars, rope swings and much more. Wiwiurka is one such company that’s well worth checking out. Performance Stage For the kids aspiring to a life on Broadway, there’s nothing better than having their own little stage at home. They
David Deem 714-997-3486 Dave@DeemTeam.com No matter how careful you are, inevitably, you’re going to spill something. Whether it’s red wine on your favorite shirt, tomato sauce on your best tablecloth, or chocolate on the rug, the time will come when you’ll have to move into action fast to remove a stain from clothing or furniture. Here’s a stain-removing guide from Real Simple for some of the most common culprits you’re likely to encounter. Coffee. Stretch the coffee-stained fabric over a bowl and pour boiling water over it from about a foot above. If the coffee included milk or cream, follow up with an oil solvent. Sugar too? Pre-treat the item with a stain remover. Wine. For red wine, start by giving the stain a coating of salt. Then stretch the fabric over a bowl and pour boiling water over it from a foot above. For white wine, run cold water over the stain then spray with a solution of 1 tbsp. of clear dish soap in 10 oz. of water, and dab with an enzyme detergent. Chocolate. F