In the wake of a recent pandemic, Americans have been cashing in on their homes' increased value. Cash-out refinancing is up 33% from last year and it is clear that this trend will continue as more people cash out to make some extra money during these hard economic times.
Property values in America are on fire, and this year's pandemic seems to have fueled an even greater appreciation. The low rates on mortgages have also made it easier for home owners. Those who were previously unable to purchase property because of high interest rates before are now being able to do so, said Dan Roccato with Credible Financial Analysts. "A record number of people are now home owners thanks to rock-bottom mortgage rates."
The Fannie Mae forecast predicts that home prices will slow down in 2022 after reaching an all-time high 18% increase from 2021 levels. This is much faster than previous years' gains, which ranged anywhere between 5 to 11%.
The prediction was made after reports came out stating how hot housing markets were becoming around the country. Low inventory numbers and interest rates being at historic lows for an extended period of time contribute to the hot market.
When a neighbor sells their house at an eye-popping price, it increases the value of surrounding properties even if they’re not for sale. This is because lenders require appraisers to weigh recent sales based on so called comparable sales - meaning similar homes within proximity that went through recently in order to come up with fair market values. The result is your home appreciates in value as your neighborhood does.
Have you had a comparable market analysis done for your home? You may be surprised to find out how much equity you have in your property. It could be time to sell and move up to your dream home!
