{"id":1216,"date":"2020-10-26T16:09:26","date_gmt":"2020-10-26T16:09:26","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1216"},"modified":"2020-10-26T16:09:26","modified_gmt":"2020-10-26T16:09:26","slug":"two-important-impacts-home-equity","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/two-important-impacts-home-equity\/","title":{"rendered":"Two Important Impacts of Home Equity"},"content":{"rendered":"
\"\"

Two Important Impacts of Home Equity<\/p><\/div>\n

\n
\n
\n

Equity continues to rise, helping American homeowners secure a much more stable financial future. According to the most recent data from\u00a0CoreLogic<\/em>, the average homeowner gained\u00a0$9,800<\/a>\u00a0in equity over the past year. In addition, experts project 2020 home prices to continue\u00a0rising<\/a>. With prices going up, equity gains will also keep accelerating. Black Knight just\u00a0reported<\/a>:<\/p>\n

\u201cThe annual percent change in the overall median existing single-family-home price has skyrocketed in the past several months, with recent numbers at three to five times higher than rates seen in the past several years.\u201d<\/em><\/p><\/blockquote>\n

Jeff Tucker,\u00a0Senior Economist<\/em>\u00a0at\u00a0Zillow<\/em>, just\u00a0qualified<\/a>\u00a0recent price increases as\u00a0\u201cjaw-dropping<\/em>\u201d and\u00a0\u201cwithin a hair\u2019s breadth of double-digit year-over-year appreciation.\u201d<\/em><\/p>\n

Knowing\u00a0equity<\/a>\u00a0will help enable many homeowners to better survive the economic distress caused by the ongoing pandemic, it\u2019s important to break down two key homeowner benefits of increasing equity.<\/p>\n

1. Equity Increases a Homeowner\u2019s Options to Buy a New Home<\/strong><\/h4>\n

Aside from the financial damage of the last seven months, there has also been a tremendous emotional toll on many people. Shelter-in-place mandates, quarantine requirements, and virtual schooling have all made us re-evaluate the must-have requirements a home should deliver. Having equity in your current house gives you a better opportunity to move-up or build your perfect home from scratch.<\/p>\n

Mark Fleming,\u00a0Chief Economist<\/em>\u00a0at\u00a0First American<\/em>, recently\u00a0explained<\/a>:<\/p>\n

\u201cAs homeowners gain equity in their homes, they are more likely to consider using that equity to purchase a larger or more attractive home \u2013 the wealth effect of rising equity.\u201d<\/em><\/p><\/blockquote>\n

If you need to make a move, the equity in your current home can help make that possible \u2013\u00a0right now<\/strong>.<\/p>\n

2. Equity Enables Homeowners to Help Future Generations<\/strong><\/h4>\n

An increase in home equity grows overall wealth, which can transfer to future generations.\u00a0The Federal Reserve<\/em>, in an addendum to their recent\u00a0Survey of Consumer Finances<\/a>, explains:<\/p>\n

\u201cThere are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.\u201d<\/em><\/p><\/blockquote>\n

The\u00a0Federal Reserve<\/em>\u00a0also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:<\/p>\n

\u201cIn addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children\u2019s educational success by paying for college or private schools, which can in turn increase their children\u2019s ability to accumulate wealth.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

Equity can help a homeowner grow their confidence in a more stable financial future. It provides near-term move-up options and creates a positive impact for future generations. In many cases, the largest single investment a person has is their home. As that investment appreciates in value, financial options increase too.<\/p>\n<\/div>\n<\/div>\n<\/article>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Equity continues to rise, helping American homeowners secure a much more stable financial future. Finish Reading Two Important Impacts of Home Equity<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[15,10,18,91,128,158,224,138,52,25,176,49,159,170,42,63,20,12,13,28,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1216"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1216"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1216\/revisions"}],"predecessor-version":[{"id":1218,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1216\/revisions\/1218"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}