In the monthly STAT newsletter, Tom Ruff wrote about the overall improvements in our real estate market. Factoring for seasonal lag, sales volume and prices are up while negative equity (underwater) and foreclosure rates are down. In fact, foreclosures have waned down to a trickle of only 223 per month on average, with the majority of foreclosures stemming from the epic 2006 crash.
One of the gems in Tom’s article was a chart that indicates how much equity a home owner (on average) is projected to have built up depending on when the home was purchased. The chart is based on some typical assumptions: zero down payment, equal mortgage and sales price, 30-year fixed mortgage, not refinanced, interest rate from original time of loan and a value based on median sales numbers.
In terms of lead generation, this graph could be a goldmine. From the data, we can see the time since the purchase and amount of average accumulated equity. Translation: the people ready and financially able to move. Using the tax search function in Monsoon® you can drill down to your target market and set the sale date to those peak years(1999-2005 or 2009-2012). Conversely, you could market to those with negative equity (2005-2007) looking to make a start fresh.