Home prices jumped to yet another record high in August, rising 18.1% annually according to the report. This represented the largest gain from the year prior to the report and caused a home-price increase of 1.3% from July.
Home prices continue to rise at a limited pace as a broad spectrum of buyers drive demand for a broad supply of homes, CoreLogic President and CEO Frank Martell said. The trend of strong price gains continues with large amounts capital chasing too few assets indefinitely. Home prices saw the largest boost in a Pacific Northwest metro area, specifically in metros such as Bend, Oregon which saw an annual average home price increase of 37.2% and Twin Falls, Idaho who saw an increase of 35.8%, the report said.
Homeowners can take advantage of rising home prices by taking a cash-out refinance on the newfound equity in their homes. Rising home prices are due to affordability challenges and low housing inventory, as more investors and homebuyers enter the market amid record-low interest rates brought on by the pandemic according to the CoreLogic Home Price Index HPI and HPI Forecast. After COVID -19 and stay-at home orders shut the economy down, the spurring a boom in home sales in the U.S.
The growing home prices are also evident when looking at the population that makes up today s homebuyers. In a recent CoreLogic Consumer Survey, 59% of homebuyers said they have a household income of at least six figures, compared to 10% of homebuyers who reported earning less than $50,000 per year
As the economy continues to rise, economists predict home prices will continue to increase, but the level of price gains will go down. Home price growth is expected to decline to 2.2% annually by August 2022, as the shortage of homes grows and the real estate market narrows.
Homeowners can tap into their rising equity levels by taking a cash-out refinance amid today s low mortgage rates. At Credible, find multiple mortgage lenders for you and save money by choosing a mortgage lender with the best interest rate for you.
What homeowners can do to take advantage of increasing homes values?
As home prices rise across the U.S., there are several ways homeowners can take advantage of their higher home values. As demand for homes continues to increase, homeowners could make a high profit by selling their home now. However, the drawback to selling is that homeowners would then face a competitive housing market as they move from sellers to homebuyers.
Another option to tap into your home's equity is a cash out refinance. Homeowners who refinance now could pull money from their homes to use for home improvement projects or even to consolidate high-interest debt. And they could even lower their monthly mortgage payments with today s low interest rates. For homeowners who are not looking to sell soon, now is a good time to invest in their home to improve its value even further. Those who pay extra money towards their principal mortgage balance will see even higher equity gains in their home which will be beneficial when they can't sell or refinance.
If you need to pull money out of your home or reduce your monthly payments by refinancing, think again. All of your questions will be answered, and all of your questions answered.
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