{"id":3709,"date":"2021-08-16T05:00:15","date_gmt":"2021-08-16T10:00:15","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/a-look-at-home-price-appreciation-and-what-it-means-for-sellers\/"},"modified":"2021-08-16T05:00:15","modified_gmt":"2021-08-16T10:00:15","slug":"a-look-at-home-price-appreciation-and-what-it-means-for-sellers","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/a-look-at-home-price-appreciation-and-what-it-means-for-sellers\/","title":{"rendered":"A Look at Home Price Appreciation and What It Means for Sellers"},"content":{"rendered":"<p><img data-recalc-dims=\"1\" decoding=\"async\"  src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135430\/20210816-KCM-Share-549x300.jpg?w=358&#038;ssl=1\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"A Look at Home Price Appreciation and What It Means for Sellers | Simplifying The Market\" loading=\"lazy\" style=\"margin-bottom: 5px;clear:both;max-width: 100%\" \/><\/p>\n<p>When you hear the phrase <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/06\/a-look-at-home-price-appreciation-through-2025\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\"><strong>home price appreciation<\/strong><\/a>, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let\u2019s look past the dollar signs and dive deeper into the concept. To truly understand home price appreciation, you need to know how it works and why it matters to you.<span id=\"more-44945\"><\/span><\/p>\n<p><a href=\"https:\/\/www.investopedia.com\/terms\/a\/appreciation.asp\" target=\"_blank\" rel=\"nofollow noopener\"><em>Investopedia<\/em><\/a> defines appreciation like this:<\/p>\n<blockquote>\n<p><em>\u201c<strong>Appreciation, in general terms, is an increase in the value of an asset over time<\/strong>. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. This is the opposite of depreciation, which is a decrease in value over time.\u201d<\/em><em style=\"font-size: 16px\">\u00a0<\/em><\/p>\n<\/blockquote>\n<p>When we consider this definition and how it applies to real estate, a few words stick out: <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/06\/09\/home-price-appreciation-is-as-simple-as-supply-and-demand\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">supply and demand<\/a>. In today\u2019s real estate market, we\u2019re experiencing high buyer demand and very few sellers listing their homes for sale (<em>see maps below<\/em>):<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135432\/20210816-MEM-Eng-1.png?ssl=1\" target=\"_blank\" rel=\"nofollow noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44947\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135432\/20210816-MEM-Eng-1.png?resize=650%2C366&#038;ssl=1\" alt=\"A Look at Home Price Appreciation and What It Means for Sellers | Simplifying The Market\" width=\"650\" height=\"366\" \/><\/a>No matter the industry, anytime there\u2019s more demand than supply, prices naturally rise. It happens because buyers are willing to pay more to secure the scarce product or service they\u2019re looking for. That\u2019s exactly what\u2019s happening in today\u2019s real estate market. Buyers are competing with one another to purchase a home, leading to bidding wars that drive prices up. For sellers, the rising prices mean that opportunity is knocking.<\/p>\n<p>According to <a href=\"https:\/\/www.quickenloans.com\/learn\/appreciation\" target=\"_blank\" rel=\"nofollow noopener\"><em>Quicken Loans<\/em><\/a>, the national average home price appreciation rate is between 3-5% in a typical year. Today, home prices are appreciating well beyond the norm thanks to high demand. Here are the latest expert projections on the rate of home price appreciation for this year (<em>see chart below<\/em>):<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135433\/20210816-MEM-Eng-2.png?ssl=1\" target=\"_blank\" rel=\"nofollow noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44948\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135433\/20210816-MEM-Eng-2.png?resize=650%2C366&#038;ssl=1\" alt=\"A Look at Home Price Appreciation and What It Means for Sellers | Simplifying The Market\" width=\"650\" height=\"366\" \/><\/a><\/p>\n<h4><strong>Compared to the normal pace of 3-5% appreciation per year, the current average forecast of nearly 11.5% is significant.<\/strong><\/h4>\n<p>For sellers, this means that with the current <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/08\/04\/sellers-make-todays-home-price-appreciation-work-for-you\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">rise in prices<\/a>, your house may be worth more than you realize. That price appreciation helps give your <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/23\/pop-quiz-can-you-define-these-key-terms-in-todays-housing-market-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">equity<\/a> a boost. Equity is the difference between what you owe on the home and its market value based on factors like price appreciation. It works like this (<em>see chart below<\/em>):<a href=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135435\/20210816-MEM-Eng-3.png?ssl=1\" target=\"_blank\" rel=\"nofollow noopener\"><img data-recalc-dims=\"1\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-44949\" src=\"https:\/\/i0.wp.com\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/08\/12135435\/20210816-MEM-Eng-3.png?resize=650%2C366&#038;ssl=1\" alt=\"A Look at Home Price Appreciation and What It Means for Sellers | Simplifying The Market\" width=\"650\" height=\"366\" \/><\/a>You can use your <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/06\/23\/homeowner-wealth-increases-through-growing-equity-this-year\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">built-up equity<\/a> to power a move into your dream home, or you can put it toward <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/07\/09\/your-home-equity-can-take-you-places-infographic\/?a=375140-ca8522ad04357da9549c08492a932f70\" target=\"_blank\" rel=\"nofollow noopener\">life-changing goals<\/a> like funding an education or opening a business.<\/p>\n<p>But don\u2019t wait. While price appreciation is strong now, those <a href=\"http:\/\/www.freddiemac.com\/research\/forecast\/20210715_quarterly_economic_forecast.page?\" target=\"_blank\" rel=\"nofollow noopener\">same experts<\/a> say it\u2019ll start to appreciate at a more normalized pace next year. If you list your house sooner rather than later, you\u2019ll be in a better position to capitalize on the higher-than-average home price appreciation we\u2019re seeing today.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>If you\u2019re thinking of selling your house, there really is no time like the present. Let\u2019s connect so you can get an expert market analysis of your home and its potential.<\/p>\n<p>Source: New feed<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you hear the phrase home price appreciation, what does it mean to you? Through context clues alone, chances are you know it has to do with rising home prices. And as a seller, you know rising home prices are good news for your potential sale. But let\u2019s look past the dollar signs and dive [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3710,"comment_status":"false","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10157519356927224_105287467588662":"","twitter_15771620_15771620":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[54],"class_list":{"0":"post-3709","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-local-info","8":"tag-100-financing","9":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Look at Home Price Appreciation and What It Means for Sellers&#8212;NWI Loan Guy Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nwiloanguy.com\/blog\/a-look-at-home-price-appreciation-and-what-it-means-for-sellers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Look at Home Price Appreciation and What It Means for Sellers&#8212;NWI Loan Guy Blog\" \/>\n<meta property=\"og:description\" content=\"When you hear the phrase home price appreciation, what does it mean to you? 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