The Spring housing market is in full swing. Driven by low inventory and low interest rates, it’s a housing boom. Prices are rising faster than they did in 2006 before the bubble burst. High housing prices are leading some analysts to believe the real estate market is due for a correction.
Affordability is a key metric with the median-priced new home being too expensive for 60% of American households. Inventory is historically low. February saw half as many homes for sales were on the market the same time last year.
On the bright side, existing homeowners are equity rich, collectively earring $1.5 trillion in 2020. That’s an average gain of $26,300 per homeowner since the fourth quarter of 2019. If you are considering putting your equity to use, contact us and see how it fits in with your financial goals.