I have good news for homeowners: your home equity has most likely gone up considerably since 2023. Home prices are higher this year than last year which means homeowners are making equity gainers.
CoreLogic reports that Californian homeowners have gained $64,000 in home equity in the last year. This is $36,000 more than the National Average of $28,000 in equity gains year over year.
Why does home equity matter? When you sell your house, you pay off existing debts like your mortgage, escrow fees, your real estate broker, and other closing costs, and then the remainder is your seller proceeds or net proceeds.
When I meet a seller who is interested in selling, one of things I like to bring with me is a Seller Net Sheet with information about what you might estimate as your “take home” after your sale closes. Whether you are taking that money into retirement or using it as a down payment on your next home, I want my clients to feel prepared and educated.
Here are 3 things that I see happening this summer in real estate:
1. Overpriced listings that are priced above what the market sees as valuable will go through a price reduction or two to go into escrow.
2. Homes with deferred maintenance in desirable areas will continue to sell quickly provided that they are priced appropriately.
3. July and August will continue to be strong markets with slight slow downs when school goes back into session and people are on vacation.
The headlines are full of the NAR Settlement and shifts in the real estate industry, but I can assure you that I am staying educated, trained, and ready to help my clients so that they have a 5 star experience every time they work with me.
Reach out to me anytime to talk real estate, bounce ideas off of me, or start the process of selling or buying.
