Home prices surge across the United States
US home prices are as high as they've ever been -- and the market shows no signs of cooling off. According to a report from real estate marketplace Zillow, average home prices in 46 of the nation's 50 largest metro areas grew by more than 10% in May compared to the previous year. And home values have increased by more than 13% on average since last year. In June, the median home price in the US was $385,000, compared to $342,000 in June 2020.
Flipping the script on rising real estate costs
All of that may be troubling news for prospective home buyers -- but millions of homeowners across the US are benefiting from this unprecedented spike in home values. And there are plenty of ways to tap into their home equity, including a home equity loan, a line of credit and a cash-out refinance. But just as important is the question of how to best leverage that equity. In addition to outlining some of my own moves below, I've interviewed homeowners from across the US to explore the different ways you can take advantage of your blossoming home equity.
Tapping into your home's value doesn't require selling it. If you're planning to stay put, using your equity for home improvements is an excellent way to make your space more livable -- and enhance its resale value.
Actionable steps you can take today
If a valuation boost has expanded your home equity past the 20% threshold, now might be a good time to refinance. A high house value coupled with a low interest rate can open the door to new mortgage opportunities: You can shorten your loan term, shave down your monthly payment or cancel your private mortgage insurance -- a policy you're required to have only when you have less than 20% equity in your home.
College is already expensive, and the price of a four-year degree is expected to cost roughly $200,000 by 2036, according to Vanguard. You can use your increasing home equity to help cover the cost of tuition in the future.
We would love to chat about how you can take advantage of the current housing climate. Please don't hesitate to reach out here, or give us a call at 617-934-2400. Wether you just want to ask a few questions, or if you would like to get started on any of the items above, we are here to help!