A report that was recently published by industry news insider CoreLogic shows that national home prices increased by more than 6 percent from June 2014 to June 2015. This is not exactly good news for first-time buyers, but for sellers and investors who got in prior to the appreciation, it’s definitely a reason to celebrate.

For investors, now could be the perfect time to lock in some gains and move on to the next property, especially considering that the recent data represents 40 months of consecutive increases in home prices nationwide. The strength of the housing market has returned.

People are buying homes again and the perception about the future is positive, or else we would not have witnessed nearly four straight years of appreciation. Anand Nallathambi, president and CEO of CoreLogic, expects the trend to continue because, “Pent-up buying demand and affordability, together with higher consumer confidence and a more robust labor market are a potent mix.”

In real estate, these conditions usually trigger an uptick in “move-up buyers,” people who decide to cash out their equity and apply it toward the purchase of a larger home. That has not been the case in recent years, however, and the experts at Fannie Mae believe this is due to people not having an accurate perception of the equity they have accumulated in their homes.

This has broader implications, because according to the National Housing Survey put out by Fannie Mae, homeowners who are underestimating how much equity they have in their homes may also be underestimating about how much of a down payment they could make with their equity; about their chances of qualifying for a mortgage; and their opportunities for selling their house and buying another one. 

Basically, the experts seem to agree that there has to be some explanation for why people are remaining in their current homes and choosing to do nothing with the equity they have built over the years. After all, why wouldn’t you sell and move into a nicer place if the equity would allow you to keep your payments and remaining principal at approximately the same amount?

Maybe the experts have not considered the idea that people like their current situation or simply don’t want to move. Seems like a fairly obvious reason for why people are opting to remain in their homes and keep their equity, instead of a lack of confidence about the housing market or a lack of awareness about the amount of equity they have in their homes.

The chance to build equity is one of the foremost reasons why homeownership is one of the most effective strategies for acquiring wealth and achieving long-term financial stability.

Having equity provides a range of options. For those who disdain the idea of moving and prefer to remain in their current homes, having equity can facilitate renovation projects that could have only been dreamed about in the past. It can also provide a variety of methods for debt consolidation.

To find out how much equity you have in your home, please contact me. 

Patrick Stoy has 16 years of mortgage lending experience. Patrick is CEO of Wilmington-based Market Consulting Mortgage, which he started in 2005 with a mission to build lifelong customer relationships by providing real value. To learn more about Marketing Consulting Mortgage, visit www.macmtg.com. Patrick can be reached at [email protected] or 910-509-7105.