Throughout the country, homeowners are building equity at a rate that might surprise you. These trends are especially good in Hawaii, so now is an excellent time to consider how your home equity can help you purchase a personal paradise on the Big Island.
What’s Happening in Hawaii?
Across America, house prices rose 18% in the 2021 CoreLogic Home Price Index. Dr. Frank Nothaft, CoreLogic’s Chief Economist, notes that this is the largest annual home equity gain in the report’s 45-year history. Hawaii is no exception to this market trend.
In fact, the report indicates that Hawaii experienced the largest average equity gain at $128,300 — over twice the national average homeowner equity ($55,300 over the last 12 months).
It’s not hard to imagine what might be causing these increases. According to Pew Research Center, nearly 60% of Americans say they can complete their jobs from home just as effectively as in an office. With many companies continuing to allow remote working, wouldn’t you want a property like this beautiful custom built house to serve as your home office?
(Who needs virtual backgrounds when your real background is the ocean?)
Selling Smartly, Buying Boldly
Maybe you’ve heard that we’re currently in a seller’s market. It’s certainly true that high buyer demand is outpacing a low housing supply. And since there are more buyers than homes available for purchase, bidding wars are driving up home prices.
If you’re already a homeowner, climbing house prices are good news. When your home is worth more, your equity (the current value of your home minus any outstanding mortgage payments) increases.
Maybe you’ve been looking to upgrade. In a market where homeowners have the power, the amount of equity on your home is likely sufficient to make a down payment on your next luxury property. Why not try to use this recent boost in equity to upgrade your quality of life?
Or maybe you’re looking to add another property to your investment portfolio. Rising home equity boosts your net worth, so it’s basic math that the more properties you own, the more equity you’ll earn.
These are uncertain times. But one thing that remains certain is that property is one of the most secure places to invest and grow your money.
What’s This Mean for Homeowners?
So what’s the bottom line here? The market is currently rewarding property owners with high equity rates. This means homeowners in a position to acquire additional properties absolutely should… and Hawaii is currently the most financially rewarding place to earn that home equity.
If you’ve been looking for an excuse to buy your dream property in Kona, consider this the time to make that investment.
Why not schedule a chat with a trusted real estate agent to figure out how much equity your current home is worth. Then let’s talk about how much a beautiful new home on the Big Island could be earning you.
Aloha, and welcome to Hawaii.