This past weekend, we celebrated the first day of spring with warmer temps and sunny days. Typically, spring marks the hottest time for the housing market. The temperature is not the only thing continuing to rise, however. Homeowners are also seeing major gains in home equity according to a recent Infographic produced by Keeping Current Matters.
Home price appreciation is driving equity higher, and the Infographic highlights increases in home equity across the country in 2020. The average increase was $26,300, with Massachusetts seeing an increase of $38K and New Hampshire at $36K. This highlights two facts:
- We are still very much in a sellers market.
- If you are thinking of listing your home for sale, this spring may be a great time to take advantage of the equity gains you’ve made.
Why are we seeing these gains? As we move into this spring market, inventory remains at record lows and more buyers continue to enter the fray, hoping there will be an uptick in inventory as we move into the season.
To give some perspective on the market, we turn to NH’s Seacoast Board of Realtors’ February market report, which states, “While the 51 February single-family transactions were not a new monthly record, it was still the best February since 2017. The month ends with only 64 active listings, matching the all-time low set in January.”
Need more insight while you consider your next move? The National Association of Realtors (NAR) often notes that a typical market has a six-month supply of homes for sale. According to their February market data issued on March 22:
“Total housing inventory at the end of February amounted to 1.03 million units, equal to January’s inventory and down 29.5% from one year ago (1.46 million). Unsold inventory sits at a 2.0-month supply at the current sales pace, slightly up from January’s 1.9-month supply and down from the 3.1-month amount recorded in February 2020.”
If you’ve been following our posts, you’ll agree that this one strengthens the content we provided on January 21st of this year, “Is It Time to List Your House For Sale?”. That post also highlights a strong sellers market and addresses how long it could last.
If you’ve been considering selling your home, the first step is to talk with the experts. Your financial advisor or lender can help you better understand how to take advantage of home equity gains you’ve made; and a local realtor can provide insight into the housing market in your area.