{"id":1962,"date":"2021-08-16T14:15:56","date_gmt":"2021-08-16T14:15:56","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1962"},"modified":"2021-08-16T14:15:56","modified_gmt":"2021-08-16T14:15:56","slug":"look-home-price-appreciation-means-sellers","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/look-home-price-appreciation-means-sellers\/","title":{"rendered":"A Look at Home Price Appreciation and What It Means for Sellers"},"content":{"rendered":"
\"\"

A Look at Home Price Appreciation and What It Means for Sellers<\/p><\/div>\n

When you hear the phrase\u00a0home price appreciation<\/strong><\/a>, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let\u2019s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.<\/p>\n

Investopedia<\/em><\/a>\u00a0defines appreciation like this:<\/p>\n

\u201cAppreciation, in general terms, is an increase in the value of an asset over time<\/strong>. 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.\u201d<\/em>\u00a0<\/em><\/p><\/blockquote>\n

When we consider this definition and how it applies to real estate, a few words stick out:\u00a0supply and demand<\/a>. In today\u2019s real estate market, we\u2019re experiencing high buyer demand and very few sellers listing their homes for sale (see maps below<\/em>):<\/p>\n

\"\"

Buyer and Seller Traffic Index<\/p><\/div>\n

No matter the industry, anytime there\u2019s more demand than supply, prices naturally rise. It happens because buyers are willing to pay more to secure the scarce product or service they\u2019re looking for. That\u2019s exactly what\u2019s happening in today\u2019s real estate market. Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.<\/p>\n

According to\u00a0Quicken Loans<\/em><\/a>, the national average home price appreciation rate is between 3-5% in a typical year. Today, home prices are appreciating well beyond the norm thanks to high demand. Here are the latest expert projections on the rate of home price appreciation for this year (see chart below<\/em>):<\/p>\n

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2021 Home Price Forecast<\/p><\/div>\n

Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant.<\/strong><\/h4>\n

For sellers, this means that with the current\u00a0rise in prices<\/a>, your house may be worth more than you realize. That price appreciation helps give your\u00a0equity<\/a>\u00a0a boost. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. It works like this (see chart below<\/em>):<\/p>\n

\"\"

Equity Boost<\/p><\/div>\n

You can use your\u00a0built-up equity<\/a>\u00a0to power a move into your dream home, or you can put it toward\u00a0life-changing goals<\/a>\u00a0like funding an education or opening a business.<\/p>\n

But don\u2019t wait. While price appreciation is strong now, those\u00a0same experts<\/a>\u00a0say it\u2019ll start to appreciate at a more normalized pace next year. If you list your house sooner rather than later, you\u2019ll be in a better position to capitalize on the higher-than-average home price appreciation we\u2019re seeing today.<\/p>\n

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

If you\u2019re thinking of selling your house, there really is no time like the present. Let\u2019s connect so you can get an expert market analysis of your home and its potential.<\/p>\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><\/h5>\n","protected":false},"excerpt":{"rendered":"

When you hear the phrase\u00a0home price appreciation, what does it mean to you? To truly understand home price appreciation, you need to know how it works and why it matters to you. Finish Reading A Look at Home Price Appreciation and What It Means for Sellers<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[38,15,199,306,129,18,27,128,158,25,176,9,49,159,42,40,63,90,20,12,375,28,47,19,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1962"}],"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=1962"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1962\/revisions"}],"predecessor-version":[{"id":1967,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1962\/revisions\/1967"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}