With many homeowners already owning their home for several years, the increase in equity is helpful in increasing their financial security. The appreciation in the value of the home gives owners more options when looking to refinance or take out a reverse mortgage.
The soaring house values in California are mainly due to the state’s population growth, which has been fueled by its rapidly-growing technology and entertainment industries. This population surge, combined with a limited supply of available homes on the market, has created a seller’s market which offers homeowners a large return on their investment.
Additionally, California's economic environment is attractive for investors. Buyers from across the US have been attracted to the California real estate market, leading to an increase in competition among buyers and driving up prices faster than most other states.
The recent increase in home equity is predicted to continue, as the demand continues to remain strong while the supply of homes remains relatively limited. Homeowners in California can also benefit from a lower tax burden as they are eligible for certain exemptions, making it even more attractive to buy property in the state.
In order to take full advantage of their newfound equity, homeowners in California should consider refinancing or taking out a reverse mortgage. Refinancing can help homeowners lower their existing mortgage rate and monthly payments, while a reverse mortgage can help them access the equity in their home without having to sell.
Overall, California homeowners have seen a significant appreciation of their home's value over the past year. This appreciation presents a great opportunity for homeowners to use their equity to their advantage and build financial security. Refinancing or taking out a reverse mortgage are both great ways to make use of the equity in their home. With continued high demand for properties and a limited supply of homes on the market, homeowners in California can expect to see their home's equity to continue to grow in the coming years.
This article was contributed on Aug 14, 2023
