Verrado | Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

 

Located at the foot of the White Tank Mountains, surrounded by high palm trees and over 21 miles of walking trails…Verrado is one of the most beautiful planned communities in the surrounding Phoenix area.       

The developers of Verrado put a lot of focus to paved walking trails meandering through common spaces and the creation of over 70 neighborhood parks framed and surrounded by mountain views and incredible natural views.     

There are many communities that are planned around specific locations to fit budgets and work force…but Verrado is one of the few places where its natural beauty took precedence on the development of an environmentally friendly area for the enjoyment of all the lucky residents      

Homes in Verrado are relatively new, it is one of the largest suburban communities in the Phoenix Metropolitan area. There are many types of homes available, from open floor plans, rustic ranch haciendas to relaxing front-porch models with modern amenities and luxurious finishes. This includes traditional two-story homes, European-style bungalows, single-family desert oases, and trendy lofts.       

Today, I would like to bring your attention to the following: Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

 

CoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation. 

“U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.” 

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

“Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years.” 

He also believes this is a great sign for the market in 2018, saying: 

“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”  

 

This is great news for homeowners! But, do they realize that their equity position has changed?

A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).

The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do!

 

This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

 

Bottom Line

If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Let’s get together to evaluate your situation!

 

Source.. KCM Cheryl Benjamin Blog

 

If you are looking to move to Verrado, allow us to help you find the perfect home, If you have any questions about Verrado, the schools, the amenities or the surrounding community, don’t hesitate to call on us at 623–206–9936    

We will be happy to help you.    

Our agents specialize in Verrado Real Estate