Rising home prices are steadily translating into a rise in home equity. According to the Federal Reserve, American homeowners are steadily regaining equity, with about 4 million home owners making the turn from negative equity to positive last year.
For many, it means a bit of breathing room, and others may begin to contemplate selling their home. We could see some freeing up of inventory, especially in the price range ideal for first-time and move-up buyers. Getting these buyers into homes helps generate steam for the entire industry.
In addition to rising home prices, there are other ways homeowners can increase home equity before selling:
Home Improvements – completing deferred repairs, painting and adding new fixtures are some do-it-yourself projects homeowners can complete for the cost of materials and their own time.
Curb Appeal – landscaping and decorative planters can help a home align well with the style of the neighborhood, while also standing out from the rest.
Neighborhood Improvements – home prices are a reflection of the surrounding neighborhoods, so volunteering in the schools, parks, or other neighborhood clean ups can improve the surrounding area.