August 2021 Real Estate Market Update: Is It Still a Good Time To Sell or Buy? – Oakland Berkeley East Bay Area

Home Equity has skyrocketed over the past year for us Americanos. But are we heading into a crash?! You have to be careful with News Headlines, they’re often meant to trigger you, sometimes mislead you, to get you to consume more news, and not necessarily give you the straight scoop. They want HEADLINES, THAT CONVERT people into more viewers and paid subscribers. This is in regards to everything, but let’s look at what they are saying in regards to a possible crash and what truly is happening in the Real Estate Market in regards to sellers. Expect to see some headlines that show us that we are headed into a crash.

Bill McBride from Calculated Risk quoted, “For Q1 2021, the Net Equity Extraction (how much money people took out of their homes) was $41 (forty one) Billion , or 0.8% (8/10ths of 1 percent) of Disposable Personal Income, or DPI. This is nothing like the amount of equity extraction during the housing bubble as a percentage of DPI.” According to CoreLogic, Quarter 1 of 2021’s American Community Survey, American equity has gone through the roof.. The average GAIN in equity of mortgaged homes is $33,400 (Thirty Three Thousand Four Hundred Dollars). Also more good news, is that the current average equity of homeowners for mortgaged homes is $216,000 (Two hundred sixteen thousand dollars).

What about homes that are owned free and clear and have no mortgage at all? This statistic was very surprising, did you know that 38.2% (thirty eight point two percent) of homes in the US are owned free and clear, that means they have NO mortgage at all. ALSO! Over the past year there has been over 1.9 Trillion dollars worth of equity, with an average of 19.6% (nineteen point six percent) increase in equity of homes. The real estate advisors and experts are anticipating for there to be increases in inventory through 2022, so it may be a good time to consider selling to avoid competition. In my humble opinion that’s looking pretty good for sellers and the likelihood of a crash, well, look at the data. That’s another national Real Estate market update for you, and from where I sit this looks very similar to what we are seeing here locally. If you have any questions, however big or small, feel free to reach out as I’m always here to help.

I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the Oakland / Berkeley / East Bay since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit. 

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