By Michael Ardolino
Last month’s column ended with some advice, “When thinking about selling your home, stay tuned to the news.”
News and trends
Currently, the market is still good for sellers and buyers with high inventory and decent mortgage rates. There are some things to keep an eye on as the year continues.
We have been paying attention to the news as well as what’s trending west in Queens. There’s been a slight shift where more homes are coming to that market and taking a little longer to go to contract. This is important to pay attention to in the coming months.
Buyers and sellers need to keep in mind that we’ve been experiencing slight inflation. We are spending more on gas, food and other necessities, which in turn, means less in buyers’ budgets to spend on a new home.
Stay abreast of the current mortgage rates as experts such as Freddie Mac are predicting slight increases by year-end. The good news is that the predicted increase is one the experts believe will be a modest one and historically low.
Where to go
With now being a good time to sell, some homeowners may be asking, “Where do I go?” Moving off of Long Island is a big decision even for potential sellers looking to downsize and retire to a warmer state or one with lower taxes. If you’re not ready just yet, take a look at a condo. This option can satisfy the goal of less upkeep of your property as you won’t be shoveling snow or weeding your garden.
Some homeowners are surprised to see how much units cost, yet there are other things to consider. In the long run, you may save on taxes and upkeep. Looking to stay in the condo for a few years? Your equity can grow. One piece of advice, make sure to look at homeowners association fees before deciding to buy one.
A look at home price appreciation
In more good news for homeowners, the most recent Home Price Expectations Survey — a survey of a national panel of over 100 economists, real estate experts and investment and market strategists — forecasts home prices will continue appreciating over the next five years, adding to the record amount of equity homeowners have already gained over the past year.
What does this mean?
The amount of household wealth a homeowner stands to earn going forward is substantial. As the graph on the right illustrates, a homeowner could increase their net worth by a significant amount — over $93,000 by 2026.
Home prices are expected to continue appreciating over the next five years, and the associated equity gains are the quickest way homeowners can build household wealth, if you’re a current homeowner who’s ready to take advantage of your built-up equity.
So, let’s talk.
Michael Ardolino is the Founder/Owner-Broker of Realty Connect USA.