Written by: Frank DeValdivielso • June 10, 2015• Real Estate

Now That We Have Equity What are We Going to do With It?

The conversations at gatherings are again sounding like what we heard some eight-to-ten years ago. Some are remodeling their homes while others are selling to cash out. Others still are hunkering down and paying debt. The good news is that the spring market has arrived and it’s doing well. End users and investors alike are engaged and making purchases, while foreclosures are down.

The architects, general contractors, lenders and their respective workers are all direct beneficiaries of the equity that some homeowners are enjoying. They are using the equity to get the home just right for their current living circumstance. When remodeling keep in mind what buyers will look for when you go to sell your home later on. And why not enjoy the upgrades yourself now and reduce the number of things that you’ll have to do when you decide to move?

Last time that we enjoyed equity some homeowners sold their homes and then rented a home to live in as a way to protect their money. So far, we’ve not seen that play out in this market. That in itself may be interpreted as confidence in the market. Or, it could be that the rental rates are just too high to make that move.

Another common discussion is around paying down the mortgage as fast as possible while the economy is good. If we have another downturn my house and cars will be paid for, the strategy goes. The lower the debt the more equity we’ll have if we ever need it again. That one is most appealing to some.

The spring market is in full bloom and buyers are coming in from everywhere it seems. End user buyers are generally looking for turnkey homes where they can literally just move in and get adjusted as quickly as possible to their new home. Have you noticed the number of out-of-state license plates in town? Investors are also very active in this market, from new construction in both luxury and non-luxury residences to multifamily dwellings. If you own a property that a developer can build on, there is a market for you, too! More investors are seeing that our real estate is a good place to put their money.

Some folks lost their homes to foreclosure caused in the economic downturn and some of those homes are now hitting the market. The banks are generally pricing these homes at fair market value and in some cases even remodeling the home to get the highest price for it. The number of homes that are foreclosures are drastically reduced and not hurting the rest of the homeowners, like they did before. Prices are trending favorably and inventory relative to demand is low in all of the communities that The Florida Villager is mailed to. We are very grateful for the current market and realize just how much a healthy real estate market helps us all. Thank you buyers and sellers!

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Last modified: June 10, 2015