Home sellers nationwide realized an average profit of $123,869 on the typical home sale in the second quarter of 2022, representing a 55.5% return on investment compared to the original purchase price. This is according to Attom Data Solutions’ 2nd quarter 2022 home sales report. Click here to view the full report.
WHAT DOES THIS MEAN IF YOU’RE A HOMEOWNER?
Here are two ways to benefit:
- You may want to list your home for sale and take advantage of the recent surge in home prices! It seems likely that housing demand will remain strong this year, and you may want to lock in your recent gains.
- You may want to consider a “cash-out” refinance to pull out some of the recent equity you’ve gained. You could use the additional funds for home improvements or any other purpose.
Whether you sell your home or refinance, you may want to consider doing so soon before interest rates go up any further. The Federal Reserve has recently announced the end of its pandemic-era stimulus programs, and interest rates have already started moving higher.
WHAT DOES THIS MEAN IF YOU’RE A POTENTIAL HOMEBUYER?
If you don’t own a home yet, you’ve unfortunately missed out on a great opportunity to build wealth through homeownership. The 55.5% ROI that home sellers have realized recently doesn’t even account for the fact that most homes are NOT purchased with cash. In other words, if you only invest $25,000 – $50,000 in your down payment and closing costs, and the home goes up in value by that same amount, you would have doubled your investment. The good news is that it’s not too late to buy a home and benefit from the growth in house prices.
While it’s unlikely that house prices will experience the huge growth of recent years, it is likely that house prices will continue moving higher, albeit at a much slower pace. That’s because housing demand will likely remain strong and inventory levels will likely remain low. Don’t miss your chance to benefit. Contact us for more information or to evaluate your options!
Contact us today to learn more! Ready to get started? We’re here to help!
Tim Erickson
P: (652) 451-2273
E: tim.erickson@goluminate.com
W: www.TimEricksonMortgage.com
Mark Henderson
P: (651) 398-3477
E: mark.henderson@goluminate.com
W: www.MarkHendersonMortgage.com