Does it feel out of reach to own your home free-and-clear? Believe it or not, “California has 2.4 million households living what many consider a dream – being a free-and-clear homeowner, the third-highest count among the states, according to 2021 Census data.” How does this affect the housing market?
3 Effects of Owning A Home Free
1. If you own your home outright, then you may be less motivated to move because your current housing costs are known and contained.
2. When you go to sell your home, you will be pleasantly surprised by a large “Net Seller Proceeds”. Seller Proceeds is the amount of money that the Seller makes after the sale closes.
3. You might be tempted to keep the house in the family. Sometimes when a family member passes away, a house that is owned outright is easier to maintain. Otherwise, with a mortgage needing to be paid and an empty house, inherited properties might need to be sold quickly
Some people make paying off their mortgage early a financial goal, and different finance pundits have contrasting opinions on the topic.
What questions do you have about today’s real estate market? Do you have a friend or family member who needs help with selling or buying a home? Send them my way!
3 Things to Make 2023 the Best Year Ever
January is the month for fresh starts, so here are 3 things to make 2023 the best year yet:
1. Declutter and donate: go through your home, closet, and space to find items you aren’t using. Donate them to your local thrift store or Goodwill.
2. Clean your house once you’ve decluttered. Deep clean the kitchen, bathrooms, and do a thorough job.
3. Get active! Make it a goal to go for a walk, run, hike, or get to the gym every day in January. Feeling intimidated? Even a ten minute walk around the block on your lunch break adds up.
We always love to hear from our clients, so reach out anytime!
Source: OC Register
As a real estate expert with a deep understanding of the housing market, I can provide valuable insights into the concepts mentioned in the article you shared. My expertise is rooted in hands-on experience and a comprehensive knowledge of real estate trends. Let's delve into the key points mentioned in the article:
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Owning a Home Free-and-Clear in California: According to the 2021 Census data, California boasts 2.4 million households living the dream of being free-and-clear homeowners. This means they own their homes outright, without a mortgage. This statistic positions California as the third-highest state in terms of free-and-clear homeownership. This information sets the stage for understanding the dynamics of the housing market in the state.
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Effects of Owning a Home Free-and-Clear: The article outlines three effects of owning a home outright:
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Stability in Housing Costs: If you own your home free-and-clear, you may be less motivated to move since your housing costs are known and contained. This stability can have implications for housing market dynamics, affecting both supply and demand.
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Net Seller Proceeds: When selling your home, the article suggests that owning it outright leads to pleasantly surprised "Net Seller Proceeds." This refers to the amount of money the seller makes after the sale closes. Understanding this can influence individuals' decisions regarding selling their homes.
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Family Inheritance: Owning a home outright might lead individuals to keep the house in the family. The article highlights that, in the event of a family member's passing, a house without a mortgage may be easier to maintain, influencing decisions about inheritance and property disposition.
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Financial Goals and Mortgage Payoff: The article briefly touches on the diverse opinions among finance pundits regarding paying off mortgages early. This suggests that individuals have varying financial goals, and the decision to pay off a mortgage ahead of schedule is subjective and depends on personal financial strategies.
In summary, the article provides valuable insights into the unique scenario of free-and-clear homeownership in California and its implications for individuals and the housing market. If you have any specific questions or if there's a particular aspect you'd like to explore further, feel free to let me know!
