Homeowners in L.A. and Beverly Hills, CA Have Incredible Equity To Leverage Right Now
Homeowners in L.A. and Beverly Hills, CA Have Incredible Equity To Leverage Right Now | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
The real estate market has been experiencing a slowdown in home prices in recent years, but many homeowners still have a significant amount of equity in their homes. Equity, in simple terms, is the difference between the market value of your home and the amount you owe on your mortgage. As you make mortgage payments and your home's value appreciates over time, your equity grows.
According to the National Association of Realtors (NAR), homeowners can build up their equity through price appreciation and paying off their mortgages. This equity can be a powerful tool when it comes to achieving your goals, especially when it's time to sell your current home and buy your next one.
For instance, if you're running out of space, you might consider moving into a larger home, or if you're an empty nester, you might need something smaller. Whatever your situation may be, your equity can help you make your next move, as it may provide some or all of your down payment on your next home.
A recent survey from Realtor.com found that many homeowners today estimate they've built up a significant amount of equity, which may surprise them. The latest data from CoreLogic also indicates that US homeowners, on average, still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic, even though equity gains contracted in late 2022 due to home price declines in some regions.
If you're considering leveraging your equity to boost your buying power, having a skilled real estate agent by your side can make a difference. A trusted agent can help you estimate the value of your home, determine how much equity you have, and what your net proceeds will look like so that you can apply that money towards the down payment and closing costs of your new home.
Having a solid understanding of your equity is key when it comes to making decisions about buying or selling your home. A skilled agent can help you navigate the often-complicated process of selling your house and ensure the transaction goes smoothly.
In places like Beverly Hills and Los Angeles, where home prices are typically higher, homeowners may have even more equity built up. A skilled real estate agent with local expertise can help you understand the value of your home and your equity, making it easier to make informed decisions about your next move.
In summary, if you're a homeowner, there's a good chance you have built up a significant amount of equity in your home. Consider speaking with a skilled real estate agent to understand your equity and leverage it towards your next home purchase.