Using Home Equity to Motivate Buyers and Sellers

As the spring homebuying season kicks off, the real estate market is showing impressive growth, with home equity reaching historic highs. The median existing-home price hit $398,400 in February, a new record, and home prices have risen by 47% nationwide over the last five years. Sellers can capitalize on this appreciation, while buyers have a unique opportunity to build wealth faster. According to NAR Chief Economist Lawrence Yun, home prices are expected to rise by 3% in 2025 and 4% in 2026 due to persistent housing shortages, making real estate a stable long-term investment compared to fluctuating stock markets. Homeownership is increasingly crucial for building wealth, with homeowners' median net worth projected to be $430,000 by 2025, compared to just $10,000 for renters. With improving inventory and job growth, the market is poised for a significant rebound, with home sales expected to rise by 6% in 2025 and 11% in 2026.

Using home equity to motivate sellers and buyers. May homeowner’s stand to make huge profits if they sell and 🔗renters need to start building long term wealth through housing. [NAR]