Free At Last
By Rich Rodenburg, Associate Broker
The sacrifices we have endured have finally paid off and humankind is approaching near normalcy once again. Those of us who are vaccinated can enjoy freedoms we took for granted pre-pandemic; dinner with loved ones and friends, a handshake, a hug, seeing someone’s whole face.
You might be one who hesitated to put your house on the market, but are now feeling better about letting strangers tour your home. You might have decided not to be one of those strangers looking through other people’s homes. Hopefully, you are once again more comfortable entering the real estate scene.
In spite of the pandemic, houses continued to sell briskly. The short supply of available homes continues to drive up prices. Interest rates are still available at or under 3 percent, and we don’t know how long that can last. Our home values continue to appreciate at double-digit rates, a pace double what we typically see in Lincoln. Some are predicting that soon, we may see a bit of leveling, if not a slight correction. During the pandemic, many homeowners were given a pass and lenders were told they can’t foreclose on those who suffered financially due to job losses or reduced earning. This will have to end soon. Instead of letting the bank take the house, smart homeowners will either re-structure their loan payments or sell their home, hopefully at a price high enough to pay off the loan, and still have a healthy profit in their pocket.
The possibility of inflation is also in the news. Some inflation is healthy, but too much is not. The good news for homeowners is that the amount your home appreciates, whether by supply and demand, or inflation, is based on the whole value of your property and improvements, not the amount you have invested in it. For instance, if you borrowed 90 percent of a $300,000 home, and the value increases 10% over the year, you will realize the growth on the total value of the home, not just the $30,000 you have invested. At 10% appreciation, your home would be worth double what it is today in about seven short years.
Thinking about buying or selling, please give Kim or myself a call.
Rich Rodenburg – 402-440-7570 – email@example.com
Kim Soucie – 402-440-9199 – firstname.lastname@example.org