Home prices up in 2021 – and continue to break records

Home prices are rising and rising some more in 2021.

The price at the beginning of the year climbed by more than 10% from the same time a year ago. Even the modest uptick to interest rates couldn’t slowdown that rate of home price growth through the opening months of 2021.

In some areas like Phoenix, Seattle and San Diego, home prices are up nearly 16% annually while other major cities continue to experience price spikes. At the same time, millions of homeowners across the nation are earning more equity as a result.

Since about June 2020, home prices quickly gained steam and have not looked back. From a historical perspective, the price gains are the highest they’ve been since 2006, creating opportunities for homeowners to build greater financial security through their equity.

Home equity is simply the portion of the home that’s paid off in context to the home’s current market value. To calculate the home’s equity, simply subtract the amount owed on the loan from the current home’s value.

Home equity is a key tool in building wealth and gaining financial flexibility for years to come. And this essential asset will only continue to grow as the market expands.

If you’re looking for a low-cost way to borrow a substantial amount of money, home equity paves an easy path forward. You can tap into the home equity you’ve built over the years to obtain funds for any reason, including major home improvements or renovations.

Others may apply for a cash-out refinance to tackle debt through consolidation, or advance themselves and increase their earning potential by paying for college or training. The money can also be used for emergency expenses, investment or other opportunities.

Depending on the type of loan, funds will be dispersed in a lump sum or on an as-needed basis, much like a credit card works.

Please contact us today to learn more about how you can tap into your home’s equity to gain access to life-changing financial resources that can pay for your next big move.

Millennials lead real estate market once again

Housing habits may have shifted as a result of the pandemic, as more families expand their households to multiple generations. Meanwhile, other trends are showing their staying power.

Despite the changing real estate landscape and pandemic-related economic challenges, millennials once again led the way as the largest share of homebuyers for the eighth consecutive year.

A substantial bulk of millennials between the ages of 22 and 30 plus half of their older peers were first-time homebuyers. The younger cohort of buyers had recently shared a home with their parents or relatives before making the leap into homeownership themselves.

The path to homeownership has been made more difficult and more accessible. Buyers are facing low inventory, but they are also enjoying historically low interest rates. In 2021, however, interest rates have risen by modest amounts.

Nearly 6 out of 10 younger buyers faced an uphill battle in finding a for-sale home that fit their needs. When it’s all said and done, less than half of recent homebuyers said finding their perfect home was a major challenge.

Millennial buyers sought out homes within the suburbs with a strong preference for homes near their workplaces, a recent survey of home-buying habits showed. They dread long-commute drives and cherish being near family and friends.

If you’re in the same boat and are thinking about buying a home in the Twin Falls area, we can help. There’s a lot of excitement bubbling up across the region. People are taking notice of all the wonderful attributes and destinations that make Twin Falls unique and appealing. As you embark on your next adventure and welcome a new beginning, consider the possibilities in Twin Falls. Contact us today to learn how easy it is to obtain a mortgage loan program that’s designed with your goals in mind.