The average net worth of American homeowners surged to new highs in September. Statistics collated by Bloomberg indicate that US homeowners collectively own $141.7 trillion in equity, a record high that has not been reached before. Spurned on by low interest rates, rising inflation and high house prices, there has simply never been a time like now when it comes to the availability of home equity.
Renovate or Start Again New Home?
With that in mind, many homeowners might be looking for something new – the question is, do you stick or twist? Should renovation come next, or a new property entirely?
The Homebuying Process
While property prices remain high, mortgages are reasonable and loan requirements remain relatively lax. This is especially the case for veterans and first responders; the respective rates remain competitive, especially when considering the lack of a need for a down payment. Furthermore, house prices are set to now come down slightly. That being said, prices are still up 14%, and corrections are on the horizon when it comes to interest and inflation, according to CNBC. It’s unlikely your property will improve in value – but if it’s the perfect place, it might be worth buying.
Home Renovation – at a Cost
While homebuilding has improved in terms of quantity since the start of 2021 and the restocking of the labour market, there remain extensive supply issues. This has seen a mid-October dip in homebuilding as observed by Reuters. As a result, you can expect a difficult time obtaining materials for extensive renovations. This is worth bearing in mind – renovation will come at a cost, and could take some time to complete.
Minor Changes
It may be that the best thing to do right now is wait. That doesn’t mean you don’t have to renovate, however. Interior design changes are perhaps easier than before – businesses have expanded their digital presence and it’s increasingly straightforward to pick up items and decorations to change the look of your living spaces. You can do an awful lot with simple changes of colours and decor, and that can be as good as a full-scale renovation.
If you are in possession of a good amount of equity, however, why not make the change? It might not be completely cost-effective but with a proper budget you can make the case for change to yourself. Make a plan, look at the market issues impacting property, and make your choice.If you want more information regarding these topic, we have also written other articles too, refer:
New Home vs. Renovating the House: What Is the Best?
Should You Renovate Your House Before Selling It?
