A Possible $1 Trillion Rise in Home Equity in 2013?

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`Rising home prices have already resulted in a $760 billion growth in home equity during the past year,` Yun said. `Given that each percentage point of price appreciation translates into an additional $190 billion in home equity, we could see close to a $1 trillion gain next year.`



The way that you look at a situation, issue, or problem has a great affect on the decision you make and the action you take on it.


For instance, how many people do you know see U.S. home owners gaining $1 trillion in 2013?


There are a lot of conditions that are pressuring the homes prics in the United States upward. Some of them include a decreasing supply of homes, slightly loosened (but still very tough) lending standards, and the lowest mortgage rates in history.


The outcome of this set of circumstances?



The national median existing-home price[sup]2[/sup] for all housing types was $178,600 in October, which is 11.1 percent above a year ago. This marks eight consecutive monthly year-over-year increases, which last occurred from October 2005 to May 2006.

On top of that, the so called `bargain basement` deals on U.S. properties are long gone, and on average, they are selling at just 20% below.


If you are looking to invest in residential properties, then the time to act is NOW!


Read all the research from NAR here
 
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