Even though home prices have moderated over the last year, many homeowners still have an incredible amount of equity.
A recent study done by CoreLogic estimates that most homeowners have more than $100,000 in equity. Selma Hepp, Chief Economist for CoreLogic says:
“While equity gains contracted in late 2022 due to home price declines in some regions U.S. homeowners on average still about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”
In California, we have had an even greater increase in home equity over the past couple of years. The equity you have built up over the years can be used to your advantage when your house sells, enabling you to purchase your next home, but there are other investments you can make with your equity.
Perhaps you have had an interest in starting a business, but never had the capital to get it started, or you own a business and would like to expand. You can put your equity to work for you by making improvements in your business or your home.
With new city regulations making it easier to obtain permits for ADUs, many homeowners are considering building an income property on their property. The equity in their present home makes it possible to create another source of income.
If you live in California and want to make your equity work for you, consider a business loan with Sun Pacific Mortgage. Give us a call at 707-523-2099 or find us at www.sunpacificmortgage.com.