Home Equity Gains Bring Move-Up Buyers Back to the Housing Market

As home values continue to appreciate, some existing homeowners are gaining enough equity in their current homes to move-up to more expensive housing. In a recent report by FNC, move-up buyers are making their way back to the housing market as the increases in home equity allows them to make a substantial down payment on their next house. FNC Director of Research, Yanling Mayer, said, “An important sign of a healthy and sustainable recovery is increased housing turnover drive by trade-up buying, which is more or less discretionary spending. These buyers are typically more responsive to market conditions and financial incentives.”

According to RealtyTrac, “18.5 million homeowners – 40% of all homeowners – have at least 20% equity or more, putting them in a prime position to sell.”  RealtyTrac’s Vice President, Daren Blomquist, anticipates that in the next 15 months, if home prices continue to increase at their recent pace, another 8.3 million homeowners who are on the “equity fence…should have at least 20% equity.” http://bit.ly/16nndwN

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