Ray Marquez
Housing demand has increased from move-up buyers, who are existing homeowners who wish to sell their current home to upgrade with a larger or more expensive home. This is in large part due to improving levels of home equity across the country.
With increasing home prices comes increasing demand from these move-up buyers, who can now put down a greater downpayment on a new home thanks to gains in value on rising equity. This is certainly true with Danville real estate as well, as the market has seen an influx of buyers who are ready to move up in the world.
This is yet another sign of a healthy and truly sustainable recovery, as this increased home turnover is based primarily on discretionary spending. Move-up buyers tend to be much more responsive to market conditions and any financial incentives.
Along with increased home equity in their current home, many move-up buyers are motivated by rising mortgage rates. These buyers feel that if they don’t act now, they’ll just be kicking themselves when mortgage rates jump in a few months. While rates are still at historic lows, experts are predicting they will start to climb upwardas we approach 2014.
According to the vice president of RealtyTrac, Daren Blomquist, 40% of all homeowners now have at least 20% equity in their home, which means they’re in the perfect position to sell now. Their research also finds about 8.3 million homeowners in the US should have a minimum of 20% equity within 15 months, assuming home prices continue to rise at the rate they’ve been going the last year or so.
As Blomquist put it, if just 5% of these “on the equity fence” owners list their homes, that will create at least 415,000 new homes on the market over the next few months.
This news just shows that the market is moving from investors buying up distressed homes to primary home purchases, and it will continue to improve as more homeowners who were previously underwater start to gain equity.
If you are interested in moving up, selling your home or have any general real estate questions, contact me anytime at:
Ray Marquez
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- Pending: 174 La Monte Tracy, CA - September 18, 2013
- Move-up Buying on the Rise Thanks to Rising Home Equity - September 18, 2013
- Stunning 4 Bedroom Estate With Private Dock for Sale - August 20, 2013
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