What does home price appreciation mean to you, the seller? As a seller, rising home prices will be beneficial to the sale of your home. Let's look at how this concept matters to you.
Investopedia defines appreciation like this:
“Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.”
The definition in regards to real estate has to do with supply and demand. Currently, the real estate market is experiencing high buyer demand and fewer people listing their homes. Regardless of the industry, when there is more demand than supply the prices go up. Interested home buyers are competing against one another and causing many times, a bidding war that drives the prices up. Opportunity is knocking for sellers.
For sellers, with the rise in house prices, your home value may be worth more than you think. Price appreciation boosts your equity. Equity is when there is a positive difference in how much your home is worth to what you owe on your loan.
This is great news for sellers in this market. You can use this towards your dream home or use that equity for opening a business or funding an education. But do not hesitate! Some experts say the next year's house appreciation will occur at a more normal rate.
Contact The Aaronson Group today at 949-388-5194 or info@previewochomes.com and let us help you sell your home!
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