The value of your home could be rising.
Historically, homes have been a smart investment. Owners lived in a house, then got their money back when they sold…it was a better deal than renting. Borrowers got tax breaks, too, and built equity that could be leveraged into bigger houses as their incomes grew.
But there have been hiccups over the years where home values have dropped significantly and many homeowners found themselves underwater or with a drastic loss of value in their property. Many families today are still waiting for their homes to regain some of its losses so they can move on. When will that home reach its value again?
All key indicators are showing that there is confidence in Minnesota’s economy, which is translating to a positive trend in housing, according to the year end housing report from the Minnesota Association of REALTORS®.
With the continued addition of employment opportunities coupled with low mortgage rates and a tight rental market, many people made the homeownership choice in 2013. Prices are on the rise in Minnesota and inventory is low, so many of those homeowners who found themselves underwater a few years ago, can now consider making a move.
That being said, it’s impossible to accurately predict anything about the housing market. Even in a reasonable interest-rate environment (like we’re In today) and with reasonable appreciation, most real estate experts say getting back to where we were is going to take some time and may be well down the road for most homeowners.
If you don’t HAVE to move, it might make sense to sit tight a while longer and watch prices rise. And if a move is imminent for your family, at least you are in a much better position with home values than a couple of years ago.
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.